Lethbridge Real Estate - Where are Prices Headed?

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Real Estate Sales Representative with Robert W May - Lethbridge Real Estate

Lethbridge Real Estate - Where are Prices Headed?

 

I get asked at least once a week from a curious friend or past client to predict where prices are going in this crazy market.  Most often they are simply curious and not actually interested in buying real estate or selling real estate, but they are interest in making conversation about the issue.

 

Quite frankly, the economy in Lethbridge is strong.  Our unemployment rate is low, our vacancy rate is low, and most consumers are optimistic.  However, the same cannot be said of the rest of the world or our neighbors an hour south in the USA.

 

As the US market continues to crash, and I believe that it is only about half done so far, the Canadian Dollar will continue to rise.  I expect to see the Canadian Dollar reach $1.20 by next summer, along with the price of Gold, Silver, and other commodities which will rise too.  As this happens, it makes it harder for us to sell our resources to the world.  This plays a large part indirectly to answer the question of where prices are headed for Lethbridge real estate.

 

Despite our good fortune here, the number of listings coming on the market continues to rise, while the number of sales wer day/week/month continues to decline.  Consumers simply do not want to make a purchase when the economy around them is under pressure.  Because of this fact the size of the listing inventory has been growing and will continue to grow in the short term.  This growing inventory means that sellers who are serious and motivated need to be priced at or below market value if they want to have any chance of selling.  Only the most aggressively priced homes in lethbridge are selling as a result.

 

These aggressivley pirced sales become the comparables used by appraisers to determine future valuations, and as a result the trend is downward.  This means that Lethbridge home prices will go down in the short term.  It does not mean that they are crashing or that they will never recover, but in the short term I would expect that homes will be between 5 and 10% cheaper in the next 6 months.


Does this mean that it is not a good time to buy?  Not necessarily.  If you are seeking a hard to find property or are using a good real estate agent to help find a bargain, there may be a property out there waiting for you.  Also, interest rates on mortgage financing are at amazingly low levels which can either allow you to aggressivley pay off yuor mortgage or dramatically lower your monthly expenses.

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lethbridge real estate

lethbridge realtor

Robert W May is a Real Estate Broker in Lethbridge Alberta, having now been in the industry for over 23 years. . He was also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta for the past 10 years.  He is an industry leader always willing to help train and educate others in how to improve their business models for financial and personal benefit.




 

 

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Rainer
77,333
Wendy Betts
RE/MAX PROGROUP - SOUTH DELTA /SOUTH SURREY & WHITE ROCK - Tsawwassen, BC
South Delta & S. Surrey Realtor

Thanks for the update in Lethbridge...it`s always good to see what is happening on the other side of the `big hills`!!!  Our prices are holding stable - mostly because the inventory is dropping off very quickly - I agree - the Canadian Dollar is going to be above parity with Uncle Sam shortly - time to get the Canadian Investors and `W.O.O.F`` demographic moving into the southern `province``  Cheers - Wendy Betts - Vancouver BC

Oct 12, 2010 10:26 AM #1
Rainmaker
1,036,603
Kathy Clulow
RE/MAX All-Stars Realty Inc. Brokerage - Uxbridge, ON
Trusted For Experience - Respected For Results

Robert - growing inventory at times is a good thing as it can bring some stability into the marketplace ..... unfortunately it can also tip the balance in the wrong direction.

Oct 12, 2010 11:38 AM #2
Rainer
478,183
Not a real person
San Diego, CA

Hey, Robert – Your post was written just two days ago, but I had no idea that the U.S. market was continuing to crash. Down here in San Diego we seem to be in year two of a recovery. Sales have been increasing since February 2008 and prices have been increasing since February 2009. Real estate here in the United States is local.

Oct 14, 2010 09:40 AM #3
Rainmaker
532,594
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

Interesting to look back at these old posts and predictions on prices and the market and see just how accurate or inaccurate the predictions were.  Thankfully I was on target with my predictions 100%.

Mar 02, 2016 02:13 AM #4
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Rainmaker
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Robert May

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