This time last year the housing market started to look somewhat uncertain as the Covid pandemic started to make its rounds. With lockdowns, many sellers and agents had to find new ways to safely show homes and changes were made all over. It was a bit “stop and start” but many areas have rebounded. Our Grande Prairie mortgage broker team has the latest updates.
Housing Market Update for March 2021
A year on from the pandemic, we are seeing a rebound in oil prices and a recovering national economy. 2020 was certainly a challenge for Alberta as a whole, which struggled to do as well as other areas. Things ended on a high note at the end of 2020 though. A common theme we are still seeing is a stagnant or declining supply of homes on the market. Experts are predicting that the market will rise for the province in the months ahead. Let’s take a look at Grande Prairie and nearby areas’ figures.
Currently, housing prices in Grande Prairie are averaging around $313K. This is up 10.6% from last month, up 5.4% from last quarter, but down 9.2% from this time last year. Housing inventory for the area is just under 200 homes coming onto the market in the past 28 days. 129 of these have sold and homes are selling at a 96% selling to listing price ratio. Homes are spending an average of 43 days on the market.
Of all the residential properties, condo and detached home sale prices have dropped 3% since last month, with an average of $334K overall. We did see a rise in 4 and 6 bedroom home prices, but a drop in 2 and 3 bedroom homes. Condominiums have seen a big 49% drop in average sales prices, sitting at $141K. Townhomes dropped a bit a few months ago, but we are seeing average sales prices coming up again, and currently at $245K.
In comparison, in Edmonton, the average selling price is $378K, up 4% from last month, up 0.34% from last quarter, and up 8% from this time last year. Inventory in Edmonton has seen close to 2,300 homes on the market in the last 28 days. Over half have sold in this time with a selling to list price ratio of 149% and most homes sitting on the market for 34 days.
Detached homes in Edmonton have seen an overall rise of 10% in sales prices, except for the larger 6 bedroom homes, which saw a drop of 19%. Condos have seen a rise in sales prices of a big 387%. A 3 bedroom condo that cost $219K about three months ago can now cost $2.7 million.
Grande Prairie has a few hot neighbourhoods. Avondale has seen an average sale price of $244K, with 17% of homes selling above their asking price and only spending around 10 days on the market. In Northridge, the average selling price is $355K, with 18% of the homes selling above their asking price. Over in Countryside South, the average home sells for $278K and 43% of these homes have sold for over their listing prices. With hot homes getting snapped up within days.
On the other end of the spectrum, where the market is much cooler, Cobblestone has seen average sales prices of $285K, the Central Business District an average of $229K, and Westgate an average sales price of $239K. Inventory here has been very slow as well.
Impact on Mortgage Rates
We are still seeing record-low mortgage rates being offered by lenders, including the big five banks of Scotiabank, CIBC, RBC, BMO, and TD. This may keep the market competitive for a few more months but experts are predicting that we won’t see a significant rise in mortgage rates by 2022.
There has been some push by the province for the federal government to make adjustments to the mortgage stress test, feeling that the rules at this time are creating a blockage for homeownership that is unnecessary and detrimental. The groups that are being affected most are first-time home buyers and families looking to upgrade to something larger. We’ll be keeping an eye out for any changes to come.
If you have more questions about current mortgage rates and home prices, give our Grande Prairie mortgage broker team a call today!