September 2023 Real Estate Update
The end of summer is always the hardest time of the year for me. It signals the end of swimming, golfing, and getting to spend more time with the kids. September is back to school and back to reality. It means sharpening your pencil and getting back to the grind. But there is optimism in September too. It feels like a fresh start, a time to explore new opportunities, and a chance to get things right.
Historically, September has always been a busy time for real estate as well. Once the holidays are over, people start to think about making a move. You’ll typically see the inventory levels go up in September, and often it’s a very busy month for new listings.
Here are some reasons to list your home in the next few weeks:
- You’ll be able to move before Christmas
- Buyers are typically actively house-hunting
- The grass is still green and the yards look great
In Airdrie, despite having an active September sales-wise, our inventory levels are still extremely low. In the last 7 days, we saw 32 new listings come on the market and 33 homes sold. This means that we are still not able to keep up with the inventory levels, as homes are selling faster than they are being listed. The majority of the sales are happening in the under $550,000 range. This is because it’s an attractive price point, but it’s also because there is very little inventory above this price point. Rising interest rates have also halted many sales above $600,000. The ability to qualify for a mortgage with a higher interest rate is much more difficult now than it was 2 years ago. For this reason, homes above this price point tend to take slightly longer to sell, unless they have a unique location feature, such as backing onto a waterway or pathway system.
The hottest market right now is the townhouse market. This type of property seems to be the sweet spot for many people. Townhomes in Airdrie remain for the most part, priced in the $300,000-$400,000 range. We are seeing multiple offers in most cases for this style of property, simply due to its affordability and the fact that it can house more people than a typical apartment-style unit.
On a side note, with the rental market being incredibly tight, we are seeing a rise in short-term Airbnb-style options emerging. This can be great for people who are between properties and don’t want to take on a long lease when their needs are more short-term. However, these properties are arguably further tightening the more traditional rental market model. If you are considering purchasing a property to use as an Airbnb, be aware of the bylaws if it’s a condo. A recent court ruling determined that Airbnb-style rentals are considered to be more like hotels, due to the fact that there are no signed leases. For this reason, the court ruled that the owners were using the property for commercial use. If the bylaws state that the unit cannot be used for commercial use, understand that you will not be able to continue to use the property for that purpose and could face significant fines from the condo board.
I hope you enjoyed this little update and I also hope to see you at Peace in the Park this Saturday, September 23rd at Nose Creek Park. There will be live music and plenty of good cheer. This is an event organized by the Thumbs Up Foundation, a charity close to my heart. Let’s get together and rally behind the people doing so much good in our community!