Lethbridge Real Estate - Market Report for December 2008

As the year came to a close, there are a few things to note when looking at the Lethbridge, Alberta real estate market for the month of December:

1. Currently there are 566 homes for sale in Lethbridge (399 single family, 146 condo, 21 mobile homes)

2. 118 of those 566 listings were put up for sale in the month of December.

3. 55 homes sold in Lethbridge in the month of December.

Now in order to see where we are in heading, we need to look back at the statistics for the entire board for the past few months:

August - 534 new listings, 236 solds

September - 460 new listings, 228 solds

October - 527 new listings, 171 solds

November - 354 new listings, 107 solds

December - 240 new listings, 92 solds

The number of new homes put on the market changed each month by -14%, 14%, -32% and then -47% respectively. Other than the increase in October, there has been a dramatic decline in the number of new homes put up for sale each month. Comparatively, the number of homes that sold each month drops by only 3%, 25%, 37% and then 14%, respectively.

The December stats could be an indication that our local market in Lethbridge is very near equilibrium. The decline in the number of new homes listed for sale each month is outpacing the decline in sales (and home sales typically slow in the winter months, so we can expect to see an increase in sales activity in the spring months).

What can we expect to see in the coming months for the real estate market in Lethbridge? If supply continues to decrease rapidly and the demand for homes stays at a constant, the inventory of homes for sale will continue to deplete. The forces of supply and demand dictate a market, and in this scenario, their forces will hold prices steady.

What does this mean for Sellers? I can only echo my thoughts from previous months: Price your home competitively and make it shine. It is still a tough time to be a seller. Get a professional on your side and keep your expectations realistic. Realize that if you are selling and then buying in the same market, you will make up for any perceived losses on the buying end.

What does this mean for Buyers? A Balanced Market means the end of a Buyer's Market. If you are sitting on the fence, now is the time to jump in and put your money and patience to work for you. Selection is steadily decreasing, interest rates are holding and there are many homes out there priced at or below market value.

My predictions for January - 205 new listings, 89 solds

Check back at the beginning of February for actual January statistics and if you want more information on Lethbridge Real Estate and the surrounding areas, please visit me at Lethbridge Real Estate.

Lethbridge and District Association of REALTORS®

MLS ® Statistic Report

[DECEMBER 2008 ]

200820072006%INC/DEC [ 2007 - 2008 ]

Total # of Listings [Month]	240	167	215	44%
Total # of Listings YTD	6220	5026	4411	24%
Total # of Expired Listings [Month]	478	241	117	98%
Total # of Expired Listings YTD	2074	885	743	134%
Total # of Sales [Month]	92	123	150	-25%
Total # of Sales YTD	2569	3125	3501	-18%
Total Sales Dollar Volume [Month]	$23,088,281	$29,839,137	$27,465,057	-23%
Total Sales Dollar Volume YTD	$634,607,115	$729,898,327	$597,635,872	-13%