The Lacombe real estate market has had an eventful year, and the numbers tell a story of rising prices, tightening inventory, and strong demand. Let’s break it down and look at what’s happened, what it means, and what we can expect as we move into 2025.
2024 Highlights
Average Selling Price: The average selling price in Lacombe increased by 11% this year. This significant year-over-year growth underscores strong buyer demand and a competitive market that’s driving prices higher.
Sold Properties: Residential sales dipped slightly by 1%. While this may seem concerning at first glance, it’s important to note that the decrease in sales is not due to reduced buyer interest but rather a lack of available inventory. Simply put, you can’t buy what’s not for sale.
Active Listings: Active listings dropped by 12%, reflecting a shrinking market. With fewer homes available, sellers have maintained the upper hand, keeping Lacombe in a seller’s market for more than a year now.
Months of Inventory: The market is operating at just 2.45 months of inventory, meaning homes are selling quickly, and demand remains strong despite limited supply.
What Does This Mean for 2025?
As we look ahead, several key trends are likely to shape the Lacombe real estate market:
Rising Prices: If inventory remains low and demand stays steady, we can expect prices to continue climbing. Sellers can look forward to favorable conditions, but affordability may become a concern for buyers.
Be Prepared, Buyers: For buyers, preparation will be key. Having pre-approval letters ready and working closely with your agent will help you stay competitive in a fast-moving market.
Opportunities for Builders: The ongoing inventory crunch creates a significant opportunity for builders to address the demand for new homes. With interprovincial migration remaining high, there’s plenty of incentive to build in Lacombe.
Affordability Challenges: While demand remains high, rising prices could impact sales volumes as affordability pressures mount. This could particularly affect first-time buyers and those seeking homes in mid-range price points.
Interest Rates and Market Dynamics
One factor that could impact the Lacombe market in 2025 is interest rates. If rates are lowered in the first half of the year, as some predict, this could help alleviate affordability concerns for buyers and increase sales activity. However, without an increase in inventory, the market will remain competitive and prices will likely stay on the rise.
The Biggest Challenge: Selling and Buying Simultaneously
One of the trickiest parts of navigating this market is for sellers who want to list their homes but struggle to find something they like to move into. This underscores the importance of working with an experienced agent who can help you create a strategy tailored to your needs.
Final Thoughts
The Lacombe real estate market is poised to remain active, competitive, and exciting in 2025. For sellers, it’s a great time to capitalize on rising prices and quick sales. For buyers, preparation and flexibility will be essential. And for builders, the market’s inventory shortage signals an opportunity to meet growing demand.
No matter where you are in your real estate journey, partnering with a knowledgeable agent can help you navigate this dynamic market and achieve your goals. Have questions or need advice? Let’s chat and create a plan tailored just for you.