February Market Report - Back into a seller's market?

Sellers

- It is time to start finishing up those little unfinished projects around the house. Each week pick a few rooms in the house and give them a deep thorough clean.

- Start going through all the stuff you have been collecting. Anything you no longer use, its time to recycle, sell, give away, or donate it. If there is a layer of dust on those boxes, or if those clothes haven’t seen daylight in a year, use this as an opportunity to PURGE!

- This is also going to be the time to talk to a Compass Team member about what your home may be worth on the market. Whether you are thinking of selling or are happy where you are, a home owner should know what their asset is worth in the current market. In March we are trying to hone our skills as realtors. One of those skills is providing a detailed and accurate Market Analysis Report for home owners. Please help us keep sharp by providing a Market Analysis for your home. They are FREE, come with NO obligation, and take about 20-30 minutes.

For those who are thinking of selling in 2023 let us explain our marketing strategy. We will explain how your home will get in front of the right buyers.

Buyers

March is going to be the last month to snag those great deals. Inventory numbers are already below average and prices will remain constant where they are. If you are holding out for the big market crash then I have bad news, you will be waiting a long time for that to happen in Lethbridge. So do not wait until the summer to start shopping, get started in March with a pre-approval and viewing a couple houses per week.

Not sure where to start? Do you need some resources to get you started? The Compass Team works with some of the top Lawyers, Home Inspectors, and Mortgage Brokers in the city and we would be happy to introduce you to them! If you are worried about interest rates, we have seen with our own eyes, interest rates as low as 5.04% this month. The Bank of Canada will be reassessing rates the 2nd week of March so it is better to act fast.

With all this talk of March, what happened in February?

As predicted real estate numbers have rebound back from our slow January. We experienced some cold but for the most part the mild weather brought buyers out.

New construction costs on detached homes are averaging over $500,000 in Alberta. With the BoC making it harder for buyers to get approved for more money, it is no surprise the higher value homes have experienced the most dramatic market change. In this market change you will start to see builders shift away from building as many detached single family homes and start building more multi-family and duplex type properties. These types of properties are less expensive and therefore easier for home buyers to purchase.

We are predicting that Lethbridge will see a strong influx of out of province buyers again this year. These buyers will be familiar to seeing homes worth double or triple the prices out of province vs new construction & resale homes here in Lethbridge. They will be coming to our city with equity looking to relocate. This is where it matters what type of realtor you hire. The Compass Team knows how to get your listing in front of these buyers, ask us how we do that.

The strongest market in Lethbridge is still $300,000 and under. In this price point first time home buyers are able to purchase a home and have their mortgage payments be roughly the same as their rent payments. It is also a lot easier for buyers to get pre-approved in this price range. Real Estate investors are also looking at homes in this price range because the low cost to purchase and higher rent rates mean a greater Return on Investment. If you own a home in this price range and are thinking of upgrading, now a great time to sell. Buyers are looking for properties in your price point and there are fewer buyers in the next price bracket up. Talk to Ryan or Ronaldo with the Compass Team on how to make this possible.

If you have not already done so, be sure to follow us on social media and subscribe to our YouTube channels. The Compass Team has some great new listings coming up in March and April you will not want to miss.

Ryan & Ronaldo

The Compass Team