Alberta Real Estate: Strong Growth in the Lethbridge Housing Market

Alberta real estate has experienced some strong growth as of late. Specifically, the Lethbridge housing market. The city of Lethbridge is located in southern Alberta, and it is home to just over 100,000 citizens, making it the fourth city in the province to surpass 100,000 residents. The major Albertan metropolis is situated near the Rocky Mountains – perfect for those who want the big city life mingled with breath-taking natural views. Residents of the city are also treated to mild winters and warm summers – unlike other cities in Alberta – due to its proximity to the Rocky Mountains.

There’s a lot to love about Lethbridge, so it’s surging real estate activity over the past year doesn’t come as a surprise to many industry observers. Though even as many other Canadian cities start to cool after a pandemic-induced high, Lethbridge continues to experience high sale volumes, and climbing property prices to match.

Lethbridge, Alberta Real Estate Market Still Going Strong

Across the country, real estate markets have been booming for the better part of the last year. Coming off an unexpected market surge due to the pandemic, most markets across Canada have been stuck in seller’s territory since last summer. The city of Lethbridge is no exception.

While the city certainly prospered in 2020, this year has been unlike any seen before. In fact, residential property sales increased when comparing the second quarter of 2021 to that of 2020. An 81.8% increase in unit sales, totalling 1,209 units, compared to the same period in 2020 was reported across the Lethbridge housing market. Not only is this an outstanding year-to-year gain, but it is also the highest number of residential sales in Lethbridge during any quarter. Massively contributing to this gain was the sales of single detached homes; rising by a whopping 76.3%.

In terms of monthly market results, June saw another exceptionally strong month in terms of statistics across the board. Residential sales for the month totalled 265 units – a 38% gain over June 2020. Leading the charge were the sales of row houses and apartments. Unit sales of apartments increased 110% from year-to-year, but more impressively, row house unit sales inflated 191% over June 2020 levels.

These high sales levels are not being supported by the real estate inventory within this local market. While new listings on the market increased over the month, they were not enough to outpace sales, and therefore, there was no positive shift in inventory levels. With 288 new listings on the market, a 21% increase on last June, overall inventory levels actually dropped. While new apartment inventory increased 40%, overall inventory decreased 15% leading the month of supply to drop to just over two months.

Low inventory rates and high sales have had an expected effect on the housing prices in the city. While they do sit well below the national average price, the area has seen inflation over the last year. Specifically, detached homes have had a 12% average price increase over the last 12 months, and are now sitting at $358,274. Semi-detached homes have also experienced a moderate price increase, by 5%, with the average price for units sitting at $253,950. Overall, when considering all housing types, the average price at the end of June 2021 was $323,919. This is less than half of the national average, but a 7% increase since June 2020. These facts demonstrate that while prices in the city are increasing, Lethbridge is still a lucrative place to purchase property.

What’s Expected for the Lethbridge, Alberta Housing Market

As the third quarter of 2021 kicks up, buyers are hoping the real estate market in Lethbridge will begin to shift, in tandem with other similarly sized markets from coast to coast. If new listings can continue to increase, and potentially outpace sales, the market may begin to move into neutral territory. Cathy Maxwell, CEO of the Lethbridge and District Association of Realtors, says low interest rates and high savings caused by the pandemic have put the Lethbridge market in a strong seller’s market: “I’m feeling the energy in people and confidence in the market – we’ve got low lending rates, so my crystal ball is that we’re going to see a really strong third quarter.”

With the first half of 2021 in the books, it is only expected that sales will continue to boom in the Alberta city. If you are out of province and looking to buy in Alberta, now is the time to set your sights on Lethbridge. 

Sources

CREA Lethbridge
Alberta Real Estate Association
Lethbridge News Now