Medicine Hat real estate market tightest in two decades

Real estate listings in Medicine Hat have fallen to their lowest level in 22 years, a continuation of a sellers market despite a lack of sellers, according to the incoming head of the Medicine Hat Real Estate Board.

Board president Greg Keen told the News on Friday that “there were certainly a limited number of houses available for sale.”

“Statistically, we’re 44 per cent below the long-term trend for the number of properties listed for sale on the market right now,” said Keen, a Realtor with River Street Real Estate in the city, citing figures from the Alberta Real Estate Association’s January report.

“That’s substantially low, and actually the lowest it’s been since 2002.”

“That’s 2023 and we’ve started the same in 2024.”

Medicine Hat area figures for the year ending Dec. 31, show there were 164 homes in the area on the market at that time – about half the number registered at end of years from 2015 to 2019.

Even during the early pandemic, figures were above 200 listings, but the effect of the drop hasn’t lined up exactly with less activity.

That means the demand to buy a homes has remained higher relative to the willingness to list a house for sale.

Observers have long stated the local market was hampered by low inventory, but also higher interest rates.

That touches both those taking on a first-time mortgage as well as those potential sellers who would face reopening rates on a subsequent property.

With current rates twice to triple those locked in several years ago, there is little incentive to open them up unless a home owner has to, said Keen.

That might not change until later this year when interest rates could level out or begin to drop depending on general inflation outlook at the Bank of Canada, said Keen.

But, the current landscape could be beneficial to owners with difficult to sell properties, he said.

“We’re still facing supply issues, and obviously that makes it a sellers market, and difficult for buyers not having much to choose from,” said Keen.

“The good news in that is if you’ve got a home that’s tougher to sell, now’s the time to put it on the market.”

Over 12 months last year, 1,014 detached home sales were down 8 per cent compared to 2022, while the number of listings during the year fell by the same measure, 8 per cent fewer at 1,375.

That helped push average closing price up 4 per cent, to $366,600.

Higher numbers of semi-detached, row and apartment sales were also coupled with higher prices and the average residential unit price climbed 2 per cent to $330,900.

After one traditionally slow month into 2024, the trend seems to be continuing.

In January, 43 detached home sales were about one-fifth less than the same month last year, but average price was one-tenth more.