Local real estate sets record March

By COLLIN GALLANT on April 16, 2021.

The Medicine Hat real estate market posted its busiest March in 10 years, according to figures released by the local real estate board.--News Photo Collin Gallant

cgallant@medicinehatnews.com@CollinGallant

Medicine Hat’s real estate market has gone from 2020 and the worst spring in a decade to its busiest-ever month of March in 2021.

New figures from the Medicine Hat Real Estate board show the rise in volume and prices tops even 2019 figures when the local sector was only grappling with a sluggish economy, and not a near full-blown panic over the effects of the coronavirus pandemic.

And now?

“It’s rocking,” said Medicine Hat Real Estate Board president Frank Devine. “There’s a lot of action. A lot of activity.”

In the recent month, the local market recorded a 15 per cent increase in prices averaged over all residential categories on sales since Jan. 1.

Specific to March, 141 residential transactions more than doubles last March’s total and beats the six-year old record for the month by 10 per cent.

“I honestly think it’s going to be a good year,” said Devine, who had previously been cautious about the outlook, usually citing the Medicine Hat market’s relative stability as a strength.

“I can’t see anything putting a halt on it aside from anywhere else, and the size of the market will support that, because it’s less expensive to live here than most other places.”

Real estate prices across Canada are up, leading economists to believe a rush to home ownership as well as upgrading living situations is being driven by ultra low interest rates. Buyer intentions could also be affected by the want for more space or better properties caused by isolation and work-from-home orders.

In Medicine Hat however, even sales of semi-detached and condo residential units are higher in recent months.

All classes showed positive price movement in March, and volume topped that of a mini-boom in 2015 that at that time set a new spring record.

The average selling price of a detached home inside city limits in March was $354,400, marking a 10.3 per cent increase in price year-over-year.

Expanded to the greater Medicine Hat region, the average single-family home price rises to $389,000 as more acreage sales are included.

Semi-detached units in Medicine Hat fetched an average closing price of $305,500 (up 13 per cent from March 2020), townhouses $181,500 (up 5 per cent) and apartment-style condos $169,300 (up 13 per cent).

Inventory in all categories fell in the month as new listings fell short of sales, but Devine said it was not enough to hamper the resale market.