Richard Froese
South Peace News
The real estate market in the Peace River region is expected to be more active this year after challenges last year, says one local realtor.
“The real estate market in 2024 should be a bit more stable than what we witnessed in 2023,” says Layne Gardner, associate/owner of RE/MAX Northern Realty.
“Last year started off strong, but persistently high inflation caused interest rates to rise, which took some wind out of sales, for real estate.”
He says the year opened and closed on the high notes.
“The first half of 2023 started with sales increases over 2022 but slowly tapered off by mid- year when we began to witness year-over-year sales decreases,” says Gardner.
“The year ended with a slight increase over 2022, but that can be attributed to a strong start to 2023 and a strong December.”
Gardner expects strong employment opportunities in the area, combined with the possible decline of interest rates later in the year, will help strengthen the real estate market compared to 2023.
He says the market faces several challenges in 2024 as many mortgages will be up for renewal with higher mortgage rates.
“This may contribute to an increase in foreclosure properties if people are not able to afford their mortgages with higher rates,” Gardner says.
“In turn, this could put downward pressure on prices.
“Another pressure point we may see is if interest rates do not decrease, many potential buyers may continue to sit on the sidelines waiting to see what happens.”
He says residential sales were active in 2023 and made up most of real estate sales.
“Residential sales in Peace River were up 17.7 per in 2023 compared to 2022 with prices remaining stable,” Gardner says.
Residential sales in Falher were down 28.6 per cent from 2023, he notes.
“But taking into account all the Smoky River region, residential sales were up 21.2 per cent,” Gardner says.
“So, while Falher may have experienced a slightly softer market, the Smoky River region as a whole performed quite well.”
On the commercial side, sales increased by 9.1 per cent.
Finding a home to rent is another challenge in the Peace River region.
“The rental market in the area is quite tight with many new people in the region deciding to rent versus buy,” Gardner says.
“If rental rates continue to rise and rental inventory stays low, some people may have no choice but to pursue a purchase.”
On a positive note, interest in commercial and industrial space has been active.
“Commercial and industrial activity in and around Peace River is strong,” Gardner says.
Heading into 2024, he says economic factors need to improve to help buyers and sellers.
“Going forward, governments have to address affordability issues and accessibility,” Gardner says.
“High interest rates are impacting families and making it difficult to for many to make ends meet.”
He notes that the real estates market is worse outside the province.
“The market in Alberta in general is performing quite well,” Gardner says.
“The story in Alberta is quite different than it is in other parts of the country.”
Markets like Vancouver and Toronto are experiencing declining prices and sales, he notes.
“The narrative around market collapse and price corrections need to be tailored to specific markets,” Gardner says.