Archive for March, 2016

March 15th, 2016- Market Update

Friday, March 18th, 2016

Lacombe – A slower start to March with sales in the first two weeks at half the pace they were last month.  However, when compared to the first two weeks in March of 2015, they are well up.  That is typical in the real estate market where even little things like the weather can be an influence.

The number of active listings is up slightly, but still below last year’s levels, something we aren’t seeing in most central Alberta markets.  Again, less spec building in Lacombe last year is the reason when compared to other markets.

The real estate market has three modes – seller’s market, buyer’s market and balanced market.  The nature of real estate markets is that they rise and fall, in tune with the economy.  Central Alberta has experienced a balanced or seller’s market almost continuously since 2012.  Now buyers will have the advantage for a time until the economy (oil prices) recover a little.

The only people that lose in a buyer’s market are those that sell and don’t buy again in the same market.  In fact, those people only lose if they are moving to a seller’s market.  If the house you are selling goes down in value, the one you buy to replace it will have also gone down in value.

The real winners in a buyer’s market are first time buyers – more choice, stable prices and low interest rates are a rare combination that shouldn’t be ignored.

A small piece of good news broke on March 15 in regard to the Alberta economy.  A portion of an article from the Calgary Herald appears below that states that the provincial government is hinting that the small business tax may be reduced in the upcoming budget.  That would leave employers with a little more money for wages and expansion and certainly help the local economy.

Premier hints small business tax may be cut in April 14 budget, Calgary Herald, Mar. 15, 2016

Alberta small businesses could get a break in the April 14 budget in the form of a one percentage point tax cut, Premier Rachel Notley hinted Tuesday.

Notley told reporters her NDP government is looking seriously at cutting the tax from three per cent to two per cent as urged by business leaders in an open letter this week.  “On the issue of the small business tax, I would say that we simply all stay tuned for the budget,” Notley told reporters after making a speech to rural politicians in Edmonton.

The premier said her government has been meeting with business leaders and stakeholders across the province on how best to stimulate economic activity and the reduction of the small business tax has been raised. “There’s no question that’s one of the issues that has been presented to us and we’re considering a whole package of issues which will be announced in the budget,” Notley added.

Lacombe Mar 2016

March 5, 2016- Market Update

Monday, March 7th, 2016

Market Update- LACOMBE sales in February wildly exceeded our expectations, well ahead of last month and February of last year, although year to date sales are off slightly because of a slow January.  Lacombe probably less affected by the energy industry slowdown than some other central Alberta markets, which might explain the strong sales activity last month.  The number of active listings is down compared to a year ago and not causing over-supply concerns. The central Alberta markets where we’ve seen strong new home construction in the past few years are the ones that are now experiencing higher inventory levels.

It seems the Alberta economy is resigned to lower for longer oil prices which will likely mean a little slower real estate market in the short term. Prices may moderate slightly, but always take longer to go down than up.  The resiliency of the real estate market is being demonstrated by the number of sales we are experiencing in spite of the current energy industry slowdown.  The law of supply and demand works in energy the same as it does in the real estate market.  People will continue to need carbon energy for the foreseeable future.  The price will find a level that sustains a reasonable supply. Alberta has vast amounts of that supply that will continue to be sold and, while the boom has faded, the industry will survive like it has many times in the past.

Dawn Parent, RE/MAX REAL ESTATE CENTRAL AB.
#1, 5265-45 STREET, Lacombe, Alberta, T4L 2A2
Tel: 403-782-4301 Fax: 403-782-2285
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