January 2024 Market Update

Compass Team Real Estate Update: January 2024

Hello Compass Team community! Ryan here, your trusted realtor, bringing you the latest scoop on the ever-exciting Lethbridge real estate market. January has been an impressive month, and I can't wait to share the thrilling details with you.

Surging Sales Despite Inventory Dip

Let's kick things off with the heart of the matter – sales. January 2024 witnessed a remarkable surge with 115 properties changing hands, up from 80 in December 2023 and 99 in January 2023. What's truly fascinating is that this spike in sales is happening despite a decrease in the number of homes hitting the market.

You might expect a drop in sales due to the lower inventory, but quite the contrary. Lethbridge's affordable housing is catching the eye of out-of-province buyers and savvy investors, adding an extra layer of dynamism to our thriving real estate scene.

Active Listings on a Downward Spiral

Taking a closer look at the active listings, we see a considerable drop – 306 in January 2024 compared to 327 in December 2023 and a whopping 429 in January 2023. As supply dwindles, we anticipate an upward trajectory in home prices. So, if you're thinking about selling, now might be the perfect time to maximize your property's value.

Navigating New Listings with Finesse

January's new listings clocked in at 135, a slight decrease from January 2023 but an expected uptick from the holiday season. Sellers, take note: quality photos matter. Consider staging your home before the festive season to showcase its best features. We're here to guide you on making your property stand out in a competitive market.

Price Watch: The Numbers That Matter Most

Now, let's talk numbers. The average home price in January 2024 stands at $365,279 – a substantial increase from December 2023's $362,033 and a significant leap from January 2023's $299,614. A whopping 22% surge in just one year! This robust trend showcases the resilience and growth potential of Lethbridge's real estate market.

Breaking it down by property type, detached homes average $399,466, semi-detached homes at $363,980, row/townhouses at $274,859, and apartments at $174,100. Each segment contributes to the overall positive trajectory of our housing market.

Days on Market & Close Price Ratios

Homes in January 2024 are spending an average of 78 days on the market, a slight increase from December 2023 but a decrease from January 2023. The close price to list price ratio has also seen a positive shift at 97.8%, indicating a strong market favoring sellers.

Inventory Outlook & Ryan's Predictions

As we look ahead, I predict another year of low inventory and increasing home values in southern Alberta. Why? Low interest rates in 2020 and 2021 prompted many to buy or upgrade. With rates inching up, homeowners are holding tight until rates decrease or mortgages come up for renewal.

Investors and new buyers are flooding the market, and Canada's housing shortage is only intensifying. Southern Alberta, with its attractive market, is drawing attention from across the country. Interest rates are stabilizing, predicted to trend down, making it an opportune time for homebuyers.

In conclusion, Lethbridge's real estate market is thriving, and the trends suggest a promising future. For a more in-depth analysis, reach out to a mortgage broker. I'm here to guide you through every step of your real estate journey.

Here's to a prosperous year of buying, selling, and thriving in the Lethbridge real estate market!

Best regards,

Ryan and The Compass Team