As we move into fall, we are excited to celebrate our third anniversary of our Smith & Griffith Real Estate Team with CIR Realty. Three years have flown by and we are extremely proud of the service and expertise we provide to our clients. Thank you for your continued support, interest, and business.
Residential Market: The summer market was strong following a slow spring market which was hit with the first three months of COVID. Summer saw dropping inventory levels and steady sales activity. The mid-priced market under $500,000 continues to be where the bulk of the activity is happening.
“Recent national reports have shown a bounce back to new record levels over the past several months. Calgary has seen improvements over the lows recorded during the lockdowns but is far from record levels,” says CREB® chief economist Ann-Marie Lurie. “The situation in Alberta has been slightly different as the job losses were not isolated to sectors that are typically associated with rental demand. We have started to see improvements in the job market compared to previous months as some jobs start to return. There have been more than 100,000 jobs lost since last year and Calgary’s unemployment rate sits at 15 per cent. This is well above the national average of 11 per cent,” says Lurie.
The smaller cities and towns have seen a greater uptick in sales activity compared to August of last year. Many of the smaller markets have continued to surpass the 10-year averages for sales in their areas. The rural counties of Rocky View and Mountain View have seen sales levels that have greatly outperformed years past and have been in the higher price points. The rural markets of Red Deer County and Ponoka County have also been outperforming years past but in the lower price brackets.
Buyers are showing more interest in suburban and rural homes as work and life dynamics shift. The pandemic has prompted many people to reassess not only where they want to live, i.e. further away from urban centers, closer to green spaces but also reassess their needs and wants for their homes i.e. larger square footage in their home, more space for home offices/study spaces and developed outdoor space with personal amenities such as decks, hot tubs, outdoor heaters.
With the uptick in the lower price points, it has freed up Buyers that had homes they needed to sell to make their next purchase. We do anticipate seeing slower activity as we enter into the late Fall and early Winter months as we do each year but as of right now, the lower inventory combined with heightened sales continues to help balance many markets.
If there is one thing that is certain throughout the pandemic is the increase in consumers’ need for a trusted advisor and for expertise. With all the uncertainty in these times, consumers are gravitating to Realtors® now more than ever to navigate through this. This has increased how important Realtors® are to interpreting and making sense of data and guiding Sellers and Buyers through the process.
Buyers need to be aware that price changes differ depending on what and where they are buying and the motivation of the Sellers. It is extremely important to be well informed, pre-approved for a mortgage and have the most up-to-date information about the prices in the community/area you are buying in.
Sellers need to be well informed to be competitive. They need a good understanding of what has been selling around them and how their property compares to properties that have successfully sold. In many markets, the name of the game is aggressive pricing and clear motivation!
The Smith & Griffith Real Estate Team use the latest digital and social media marketing tools to maximize the number of people who see your property listing. We are confident that your property will be seen by all Buyers in the market. If priced correctly, Buyers will reveal themselves and come looking for properties that meet their perception of price to value.
Agricultural Market: The global pandemic introduced several disruptions across the food supply chains. Despite these numerous challenges, the agricultural land market has shown strength. Farm Credit Corporation reports that farmland values in the first six months of 2020 in Alberta has risen 4.9%.
Higher crop receipts and record-low borrowing costs supported strong demand for land. Key drivers of land prices are producers’ confidence in the sector’s long-term outlook and that there is a limited supply of farmland available in any given market. Prime farmland with good quality soil, a record of strong production and farm-ability with good access brings Seller’s premium dollars. One of the biggest factors that can drive farmland value is adjacency to other farmers looking to expand their current operations.
Like everything else, the full extent of the pandemic influence on short-term farmland values is yet to be known. It will take time to assess its influence on economic variables that drive the farmland market i.e. the size of the 2020 crop, foreign demand for Canadian ag commodities, interest rates and the value of the Canadian dollar. However, the long-term forecast for land in Alberta is strong. We are looking at the largest transfer of land in our history due to the aging demographic. We are going to see an unprecedented amount of land come on the market in the next decade.
If you are planning on BUYING, let’s set up an automatic MLS search email for your buying criteria and you will receive an email from us as soon as new listings hit the market. If you are SELLING, talk to us about maximizing the dollars in your pocket by using our marketing experience and tools to reach competitive Buyers.
When you are looking for an honest conversation about the real estate market, our team is here to help. We work hard to give you our best interpretation of the current state of the real estate market. Combined with our years of expertise and market intuition, we can provide the most comprehensive evaluation/comparative market analysis of your property! For a Free Market Evaluation, give the Smith & Griffith Real Estate Team With CIR Realty a call – Rees at 403.350.7815 or Kari at 403.803.3299.
Wishing you and your family a warm, colourful fall season. May you gather with your family for Thanksgiving. May the farmers have a quick and successful harvest. Stay healthy out there.
Rees & Kari – Opening Gates to the Country & Doors to the City