August 2022 Market Update
The sales in Alberta for the month of August were slightly down compared to those of August 2021, but they still remain above our ten year average for the month in the Province. In fact, it was our fourth strongest August in the past decade!
With inventory levels continuing to drop due to less new inventory coming to market, and the above average sales, it is keeping the Province in a competitive balanced market. The total months of inventory was at 3.75 months which establishes it as the second most (0.01 months higher than August 2021) competitive market conditions for the month of August in the past ten years.
The best part about the market right now is that the new buyers are still coming into the market.
The first time home buyer market continues to feed off of renters moving into home ownership. Some trends that we looked at to evaluate how sustainable this is are:
- According to Stats Canada, the pre pandemic household savings rate was around 3%. It skyrocketed to as high as 28% in the heart of the pandemic, and has settled closer to 6% this summer. That equates to a much higher savings per household which contributes to purchasing power in the housing market.
- We are experience some of lowest number of rentals available in our major City Centres.
- The heightened rent rates make home ownership a more affordable and appealing option.
- The % increase in Net Migration to Alberta is the highest in the Country due to employment opportunity and lower housing costs.
So, all trends continue to point to strong markets ahead. We continue to sell inventory as fast as it is coming on so we do not have an inventory problem, we have a time on market problem so buyers have to be prepared to make a decision quickly as they enter into the markets, whether that is buying their first home or moving up the property ladder.
Steve Philips, CIR Realty - Broker/ Co-Owner