Lethbridge Real Estate - Where is the Market headed?
Local home prices have seemingly stabilized in the short term. However, each day I watch the new property listings come onto the MLS market and watch the sales drop off the market. As an example, here is what happened today in Lethbridge.
There were 15 new listings in the City. There were 3 sales went final, and there were 4 listings cancelled, which commonly means they are firing their Realtor and looking for a better one or else have decided to not sell.
The net effect of today's activity is that the active number of listings in the City increased by 8 more properties. Yesterday was similar, 12 new listings minus 5 sold and 3 cancelled. The day before that was 10 new listings and only 1 sale. Get where I am going with this?
Each day the number of homes on our market has continued to grow. This has been slow and steady, but it is setting the stage for another shift in home prices if it continues. If inventory continues to increase by 5 to 10 properties per day the Lethbridge real estate market will suffer from a significant adjustment downward in property values. Be prepared for it.
The people who will suffer the most due to this fact are those who paid top dollar for their homes, those who paid full retail, those who bought brand new from builders, and those who put minimum downpayment into their purchase. All of those buyers will feel the impact of the impending drop in prices more than anyone else.
The writing is on the wall and the statistics do not lie. If inventory continues to rise, prices will drop very soon.
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.