The housing market in Lethbridge is showing signs of optimism for the coming year, according to Bridget Mearns, the executive officer of BILD Lethbridge. There has been an increase in migration to the city, with people coming from Ontario as well as other parts of Alberta. Despite a small blip in December, new housing numbers are within a normal range, with 213 permits issued so far this year, compared to 124 in the same timeframe last year. One of the biggest differences is the increase in renovation permits, with $34,591,350-worth of permits issued this year, including $31,193,611 worth of building projects of residential buildings.
In January, there were 85 multi-unit apartment starts, showing a promising trend in the housing market. Mortgage broker Rob Bain also noted that the Bank of Canada holding interest rates in February was great news for homebuyers. However, he emphasized the importance of acting quickly when it comes to buying a home, as waiting for better interest rates could result in higher prices down the line. The housing industry is expected to heat up throughout the year, with all eyes on the Bank of Canada for potential rate cuts or decreases by mid-2024.
According to Mearns, when sale prices match the cost to build homes, the real estate market will see significant growth. In January, the average sale price was $543,377, which was lower than in December but still higher than the previous year. The cost to build homes was $365,279, leaving a difference of $178,098 between price and cost. Mearns believes that once these two numbers align, the housing market will see a significant increase in sales. The next prime rate announcements by the Bank of Canada are scheduled for June, further shaping the future of the housing market in Lethbridge.
Overall, there is a sense of optimism in the Lethbridge housing market, with an increase in migration to the city and a steady flow of building projects. The increase in renovation permits and multi-unit apartment starts indicate a positive trend in the market. Mortgage brokers are also optimistic, with the hope of potential rate cuts or decreases by the Bank of Canada in the coming months. However, it is crucial for buyers to act quickly, as waiting for better interest rates could result in higher prices in the future. As the housing industry continues to heat up, all eyes are on the Bank of Canada for potential rate announcements that could further impact the market.
