Real es­tate adapts to econ­omy

The Drumheller Mail - - NEWS - Pa­trick Ko­lafa

Like many sec­tors in Al berta, the down­turn has take its toll on real es­tate, how­ever, there may be some po­si­tion Live signs in Drumheller. Realtor at Cen­tury 21Power Realty, Stacey Gal­laghe re­ports there were 97 ac­tiv­ity list­ings in Jan­uary, the lower in 12 months, and the pace of sales ap­pear to be on par wi pre­vi­ous years, with 8 sold. "We had an up­swing in 2006-2007 just like the rest of Al­berta and the numbe from 2016 are show­ing down­swing in prices. I thi this is just a re­flec­tion of what is hap­pen­ing in Al­bert as a whole, She said. "We feel the rip­ples for sure, bu they are not as large or at quick to come to Drumhell er like in the larger cen­tre' such as Cal­gary, Ed­mon­ton or Fort McMur­ray." She ex plains lower in­ven­tory level can be ex­pected this time o year. "Low in­ven­tory in De­cem ber, Jan­uary and Fe­bru­ary in quite typ­i­cal. There are usu­ally fewer buy­ers, but also less sellers want to move the time of year, so they will re move their homes from the mar­ket caus­ing a bit of a short­age," she said. There are a num­ber of fac-tors that can make the mar­ket slug­gish, in­clud­ing un­re­alis-tic ex­pec­ta­tions by sellers. "If sellers are un­re­al­is­tic about what's go­ing on and un­will­ing to make the price correction ahead of a down mar­ket, they will quickly gel left be­hind and in turn, we are left with in­ven­tory which is over­priced," she said. am see­ing quite a bit of that right now which is caus­ing the on mar­ket to go up, and it ap­pears to the public as though there are lots sit­ting on the mar­ket and that things are not sell­ing. That's no nec­es­sar­ily the case." Re­cent changes to fi­nanc-ing reg­u­la­tions have also ap­peared to have af­fected the mar­ket. "I am find­ing there are les sales above the $250,000 $300,000 marks and mon op­tions be­low $100,000 that there has been in a while The price range peo­ple an able to af­ford and or want t Ibe in has taken a hit since the gov­ern­ment made change to fi­nanc­ing rules in Octo ber. I think that has a lot to o with the fall­ing prices,' she said. "Fi­nanc­ing, in gen­eral, is con­tin­u­ally get­ting harder and harder to corny. CMHC fees are on these, down pay­ment re­quire ments are get­ting higher an a cred­ited and em­ploy­ment re­quire­ments are get­ting tight if you are look­ing to get mort­gage." While it is im­pos­si­ble to re­di­rect the mar­ket, she in icates that Drumheller ap ears to be sta­ble. "Small towns with three o fewer main eco­nomic drive such as Hanna, or Car­bon a tak­ing a ma­jor hit right now Drumheller has about five so we are okay. I think the s still that bit of un­cer­tain with the fu­ture, and with th un­cut gov­ern­ment causin some hes­i­ta­tion," she said. Aften get asked if I buy thi louse what will it be won 5 years? I can't predic the fu­ture, so I have no idea in Drumheller, if I had t make my best guess prob­a­bly the same as what you aid for it... and if that's th ase it's not the worst in­vest­ment you could make."

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