ANGUS HENDERSON
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It may be a doom and gloom real estate scenario in the U.S., but that’s not reflective of what’s happening in Canada, let alone a small market area like Medicine Hat, according to Lorne Krause, president of the Medicine Hat Real Estate Board (MHREB).
“Sure we’re down about 15 per cent, but you have to keep in mind that we’re comparing this year to the past three years, which have all been near or better than record years,” he said. “I don’t believe that’s a fair comparison anymore.”
Last year saw a record $500 million in total real estate sales and this year to-date — with two months remaining — sits at some $366 million or 15 per cent less than the same time in 2007.
Statistics released this week by the MHREB for the month of October showed a total sales volume (residential and non-residential) of approximately $25 million, compared to approximately $41 million last October.
The total number of sales in October was 106 compared to 165 in 2007.
The average residential price was up to $250,710 in October compared to September’s average residential price of $244,017.
According to the MHREB, the average house in the city has increased in value by some 39.6 per cent since 2005.
“We’re really moving to a more balanced marketplace, whereas the last five years have been all in favour of the seller,” explained Krause.
Mortgage broker also Jim Solomon sees positives in the present and foreseeable real estate market.
“Before we got into this hiatus, we did have quite a run-up on real estate prices,” he stated. “There has to be some sort of a return to normalcy when you get 30 and 15 and 10 per cent increases in consecutive years. At some point, things have to return to normal and that’s what I’m seeing at this stage of the game.”
For first time home buyers, Solomon said there now exists a situation where affordability has improved and interest rates are not about to go up anytime soon.
According to a report released Wednesday by ReMax Realty, Canada’s average house price has retreated from 2007’s record highs and will fall three per cent this year to $300,000 and to $293,000 next year as demand falls in the current economy.
Nationally, it stated, about 440,000 homes are expected to change hands in 2008, representing a 15 per cent decline in transactions compared to last year.
Calgary and Edmonton housing prices are expected to be down one per cent each this year. |
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