While inventory is averaging about 220 to 240 properties, real estate property prices are down by 17.5 per cent year over year in Lloydminster.
Looking at the data over the past 12-months, the price of a home on average is about $224,978 in the Border City, according to the multiple listing service (MLS) data supplied by the Alberta Real Estate Association (AREA).
This contrasts with higher prices in the urban centres like Calgary, Edmonton, Regina or Saskatoon. In Alberta prices are down as well by 4.9 per cent with the residential average being $420,152.
Caleb McLean, president of the Real Estate Association of Lloydminster and District (RALD) says that factors like the oil slump from 2015 affect Lloydminster more as it lacks diversification in other areas like mining or logging.
“If oil takes a slump in the market we feel it and we take a long time to rebound afterwards – and this is heavily reflected in the real estate market. Lloydminster really hasn’t seen a period of inflationary prices on properties like many other areas – in the big centres or in Canada as a whole or the bigger centres nearby.”
McLean says with the interest rate being around six per cent compared to about two per cent previously, people do not have the buying power and will settle for what they can afford and sacrifice getting their dream home.
Also, Lloydminster in the last few months is back to being a buyers market, says McLean. He looks at the movement of people to Alberta from places like Vancouver or Toronto, as they can sell their home for about $1.2 million and come to Lloydminster and buy a property for $500,000. As well over the last seven to eight years, Lloydminster has a lot of properties on the market so the extra supply is also keeping prices low.
McLean says the houses that are moving must be priced with respect to the market conditions.
“If they are priced well and they are in a good shape – even if they are not in good shape, if they are priced accordingly. That’s the biggest thing – to price the property where it needs to be to have that sale. And some properties that sit on the market for a long time – a lot of times it’s due to not being in demand there, and that usually reflects around the price.”
As spring approaches the local real estate president is the eternal optimist hoping for more buyers and balancing that with properties coming on the market. He says depending on what happens with the interest rate will determine the rate at which properties are sold, but it’s really hard to speculate especially on where prices will go.
“The crystal ball is pretty murky to see what might happen here. I would really love to say that we are going to get into a really great market where people are getting properties at good prices and sellers are able to sell their properties in a reasonable timeline.”
The average number of days to sell in the city of Lloydminster over the last 12-months is 94 and the average days on the market overall is 118, says McLean.