Home values are steadily increasing in Prince Albert and there is less than three months of supply. (Susan McNeil/paNOW)

By Susan McNeil

Real estate

Home sales stay strong in fall market

Nov 7, 2024 | 4:20 PM

Real estate numbers show the benchmark price of homes in Prince Albert increased 4.4 per cent to $258,500 in October, the continuation of a steady increase in home values.

Local realtor Jesse Honch with Coldwell Banker Realty, explained some of the increase in October probably flows from a slightly slower September, but overall, he sees a strong market ahead.

“I think there definitely was an increase in the number of sales. Obviously that made a bit of a difference,” he said.

October saw 47 homes sell in the city, an increase of 20 per cent from the previous year. Normally, the market has two peaks, one in the spring and one in the fall with both somewhat tied to seasons as snow melts and people want to be outside and as summer holidays end.

This past September did not see a bump in sales like before but that did happen in August, possibly as buyers wait for lower borrowing costs.

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Climbing prices are also a direct correlation to a lack of supply, something the Prince Albert market is looking at with less than four months of supply. That’s 11 per cent less than a year ago and almost 50 per cent lower than the 10-year average.

A steady reduction in interest rates that had climbed over a year ago because of the pandemic, is now helping buyers with affordability, which also increases demand.

“There was a rate drop that we saw in September and a large one – a half a percent – in October that likely fueled the market a little bit and the benchmark price definitely is a reflection of the lack of properties we have available,” Honch said.

The demand and low supply means that buyers are not getting the same deals they might have in years past.

Offers are much closer to the asking price now or sellers are getting more than one offer.

“We’re seeing competition for that property, which would fuel paying the asking prices or maybe even above it in some situations.”

One reason the Prince Albert markets is showing strength is professionals moving to the city.

As a major expansion of the Victoria hospital begins construction, Honch said he already sees an influx of workers coming to the city.

“Even though the hospital construction isn’t completed, there’s definitely healthcare practitioners and professionals that are starting to move to the area in preparation of the project,” he said.

One mitigating factor on the price and supply of homes is that some buyers, especially those purchasing for the first time, are waiting for rates to drop even more.

Two more half percentage drops are expected by the end of the year. Not only does it increase the value of the home people can afford, it also reduces debt in other areas like credit cards and vehicle loans that have variable rates.

Finally, Honch said that a new program introduced by the Trudeau government will make a difference and that is 30-year amortizations.

First time home buyers and people buying a brand new home will both be able to stretch their payments out over an extra five years.

That can mean several hundred dollars per month in savings.

“I think we’re going to be into another extended you know good healthy real estate market here in Prince Albert for many years to come. I think we’re kind of in that upward trend,” Honch said.

He anticipates that the longer mortgage times on new homes will also help push new construction, already reaching highs.

In 2021, a record 272,000 units were built in Canada, and cities have yet to feel the full effects of the federal Housing Accelerator Fund.

So far, 178 agreements have been signed across Canada that are expected to result in 100,000 new homes in three years and over 750,000 total. A key requirement is that municipalities loosen zoning restrictions and allow buildings like four-plexes as a non-discretionary use.

Nearby markets:

BATTLEFORD

Benchmark price up 4.5% to $246,500

4.13 months of supply

NORTH BATTLEFORD

Benchmark price up 4.1% to $207,600

4.64 months of supply

MEADOW LAKE

Benchmark price up 4.2% to $276,000

12 months of supply

MELFORT

Benchmark price up 5.5% to $249,300

4.17 months of supply

HUMBOLDT

Benchmark price up 7.6% to $283,800

2.4 months of supply

JANSEN REGION

Benchmark price up 20.8% to $243,758

4.23 months of supply

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susan.mcneil@pattisonmedia.com