Low inventory continues to be a theme.  Sales were down 28% this March compared to 2022, however inventory is down 21% in the same period.  While we’re currently sitting on about 2.5 months of inventory (or a 46% absorption rate), the numbers for the market as a whole are a bit deceiving.  The market under $600,000 is very hot, selling roughly 50% of the inventory in March (seller’s market), while price categories over $600,000 are all in buyer’s market territory averaging closer to 7-9 months of inventory, with roughly only 10-15% of homes selling.

Interest rates continue to be the driving factor here, as at the same time 1 year ago, many more people qualified to buy homes over $600,000 mark when rates were still 2-3%.  Now, with many rates up in the 5-6% range, and having to qualify at 2% higher than the posted rates thanks to the stress test, some people’s buying power was dropped by more than $100,000.  This has left more people fighting for homes at the lower price points, hence the massive demand under $600k, and the lack of demand over $600k.

Seller’s with higher end homes are not going to collect the same premiums or see the same amount of showing activity as sellers at the lower end price points as a result.  Because buyer’s have the competitive advantage right now over $600,000, it’s a great time to upgrade into a larger/more expensive home, if you can afford it.  There’s reasonable inventory to pick from, low likelihood of multiple offers, and seller’s should be willing to negotiate off of their listing prices.

We are noticing that buyers are still price sensitive even under $600,000, and only the best homes priced properly are selling quickly and with multiple offers.  Properties overpriced by as little as $10,000 will spend more time on the market than homes that hit the market at the right price up front, many of which are selling within the first few days of hitting MLS.

Surrounding Community Snapshot:

Blackfalds:

Current Active Listings – 45

Sales in March – 24

Likelihood to Sell – 53% (Seller’s Market)

Sylvan Lake:

Current Active Listings – 96

Sales in March – 42

Likelihood to Sell – 44% (Balanced Market)

Penhold:

Current Active Listings – 17

Sales in March – 11

Likelihood to Sell – 65% (Seller’s Market)