September Real Estate – Where Are Things Headed?

In August, we saw sales slow down. Seasonally, this is typical. People want to take a break in August to enjoy life and be outside. I don’t think anyone loves summer more than Albertans. We know how to savour the short window of time and make the most of it.

The real estate market has been strong and favourable for sellers for the last three years, so it’s reasonable to question when the pendulum will swing in the other direction. Now that kids are back in school and we’re settling into the fall market, we will soon be able to determine if sales are on a downward trend, or if this slowdown is a seasonal phenomenon. 

Other factors that affect the market include interest rates, supply and demand, as well as provincial migration. On September 4th, interest rates came down by a quarter point. This in itself does not dramatically impact people’s mortgage payments, but it does affect public opinion. It shows that mortgages are becoming more affordable and it bolsters confidence in the market. 

Over the last two months, Airdrie homes have taken longer to sell, especially the $600,000 plus price point. The days of multiple offers are no longer the norm, but rather the exception. Buyers have been enjoying more options and they want to negotiate. The main problem with our market over the last little while is that consumers haven’t adjusted to this new reality. Sellers haven’t wanted to reduce even when the home has sat on the market for a month. Buyers have been sitting in limbo choosing to wait for more interest rate reductions (which analysts predict will continue for the next 3 quarters), rather than take advantage of a good deal right in front of them.

However, the tide again may be changing based on the stats that are coming in. In the last 7 days, 52 new listings came on the market, there were also 55 price reductions, 52 listings that went pending, and 32 properties that have gone firm. These numbers show plenty of sales activity is still happening and that we may see a very robust fall market after all.  

If you are a seller in this market, consider what it will take to remain competitive and be realistic about your price. Now is not the time to think you will set a sale price record (sorry to say). Buyers, be aware that there is a cost to waiting. If interest rates continue to go down, demand will increase, which in turn, will push prices up. 

As always, a great mortgage specialist and Realtor are best equipped to guide you through the process and offer advice, ensuring that regardless of which side of the transaction you’re on, it’s a win.