Alberta house prices remain soft: survey

Alberta house prices remain soft: survey

House prices in Red Deer area dropped about five per cent compared to last year

Red Deer realtor Richard Pochylko sometimes finds house sellers need a bit of a reality check.

People who bought their existing homes 20 or 30 years ago, could easily have seen the value double or nearly triple since then.

But the market has been correcting for several years now, and the new house value number is sometimes an eye opener, said Pochylko, president of the Central Alberta Realtors Association.

“There are still a lot of people who haven’t been thinking about house values,” he said. “If you talk to them, they’re literally shocked by what you tell them.”

The days of houses soaring in value in a few short years are gone — at least for the foreseeable future.

“We’re having some problems adjusting to the fact that this province has a changing economy that isn’t going to be as boom-y as it was before. It’s going to be different.

“We will see better days ahead. But we’re not going to see — for a long time, anyway — crazy boom times, where your house just escalates rapidly.”

Pochylko said the drop in house prices should be put in perspective, however.

“It’s not like we went back to houses being worth $115,000 to $150,000. When I started in Red Deer 21 years ago, most of the houses were selling between $95,000 and $140,000. They weren’t selling at $250,000 or $300,000.”

Pochylko says it is a good time to buy, but don’t expect a financial windfall if you sell in a few years, is the message.

“I think five years from now, you’ll start to see a minor growth in value. You won’t buy a house for $300,000 and sell it in five years for $500,000.”

“You’ll buy one now for $300,000, and in five years, you’re going to sell it for $325,000 or $320,000, and that’s going to be a pretty good increase.”

A Century 21 survey of house prices across Canada released on Wednesday estimates single detached house prices in Red Deer fell in the first six months of the year by about six per cent year over year — to $262 per square foot from $276. That would see a $414,000 home reduced to $393,000.

Pochylko says that number is not far off the mark. In Red Deer, between 2017 and 2018, house prices dropped about 5.5 per cent and are heading toward a seven per cent drop this year.

Multiple Listing Service statistics for all of central Alberta show that year over year median house prices have dropped 2.2 per cent to $318,000, continuing — with a few spikes along the way — a downward trend from the first quarter in 2015, when the median price was $350,000.

This region’s experience reflects the housing market in much of Alberta. Through six months, Calgary prices were down 3.59 per cent and Edmonton 5.55 per cent. Some communities did better, with High River prices up 11 per cent and Lethbridge seven per cent.

“This is the second consecutive year our survey found soft home prices in Alberta, obviously because of the economic challenges in the oil and gas industry,” says Brian Rushton, Century 21 executive vice-president.

“For buyers, the good news is that means Calgary and Edmonton remain a bargain compared to other major markets like Vancouver and Toronto.”



pcowley@reddeeradvocate.com

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

FILE - A firefighter wears a mask as he drives his truck. THE CANADIAN PRESS/Jonathan Hayward, File
Flames rip through Edmonton-area seniors complex, but no fatalities

ST. ALBERT, Alta. — Fire has destroyed part of a retirement complex… Continue reading

FILE - This file photo provided by Leonid Volkov and Russian opposition leader Alexei Navalny, right, are seen in Germany in a Sunday, Jan. 17, 2021, handout photo published to social media. The chief of staff to the imprisoned Russian president critic Alexei Navalny is calling on Ottawa to impose new sanctions on who he descripted as “Vladimir Putin’s oligarchs.” THE CANADIAN PRESS/AP-HO, Leonid Volkov
Canada must sanction Vladimir Putin’s oligarchs: Alexei Navalny’s chief of staff

Navalny was arrested on Jan. 17 upon returning from Germany

Alberta Health Services locked the Whistle Stop Cafe in Mirror on Wednesday morning after owner Christopher Scott refused to comply with health orders. (Photo by Paul Cowley/Advocate staff)
UPDATED: AHS shuts down Whistle Stop Cafe for defying health orders

Justice minister promises to get tough with those ignoring public health orders

Max Parrot of Canada competes in the men’s snowboard big air final at the 2018 Winter Olympic Games in Pyeongchang, South Korea, Saturday, Feb. 24, 2018. Parrot has won the Comeback of the Year honour at the Laureus World Sports Awards. THE CANADIAN PRESS/Jonathan Hayward
Canadian snowboarder Max Parrot wins Laureus World Sports Award for comeback

Parrot beat out former Washington Football Team quarterback Alex Smith

This Nov. 22, 2015 file photo shows Justin Bieber at the American Music Awards in Los Angeles. Bieber’s world tour is facing another setback as the COVID-19 pandemic rages on. The Stratford, Ont.-raised pop singer is pushing dozens of tour dates including stops in three Canadian cities.	THE CANADIAN PRESS/AP-Photo by Jordan Strauss/Invision/AP, File
Justin Bieber postpones Canadian summer tour dates until 2022

52-date world tour will now kick off Feb. 18, 2022

LtE bug
Letter: Security company can help with shelter

Why don’t we leave Safe Harbour temporary shelter where it is and… Continue reading

LtE bug
Letter: Good job on K-6 curriculum

Many are questioning the quality of the draft K-6 curriculum. It amazes… Continue reading

Treena Mielke
COVID becomes all too real when someone you love is ‘positive’

The third wave of the pandemic is hitting us hard. It is… Continue reading

Wizards beat Raptors in OT, Toronto playoff bid nearly over

Wizards beat Raptors in OT, Toronto playoff bid nearly over

Most Read