The average value of Alberta farmland increased 7.3% in 2017, following average gains of 9.5% in 2016 and 11.6% in 2015. Values were driven by both demand and weather. While the province experienced steady demand in all regions, there were pocked of very strong demand from competing farm operations as well areas of decreased demand due to overly dry conditions. Southern Alberta was impacted in 2017 by a lack of rainfall on dryland, however this was offset by the pockets of increased demand. The Southern Alberta region’s irrigated land saw a stead to increase demand combined with limited supply leading to higher overall increase of 11.4%.
Average sale price in Drumheller for the first 9 months of 2017 was $200,702 with 67 sales, compared to 80 sales for the same period in 2016 that had an average price of $210,460 (down 4.6%).
The average value of Alberta farmland increased 9.5 per cent in 2016, following gains of
11.6 per cent in 2015 and 8.8 per cent in 2014. Values in the province have continued to
climb since 1993.Despite an economy hurt by depressed oil and gas prices, Alberta reported the second highest average farmland values increase in Canada, eclipsed only by Prince Edward Island. The province’s 9.5 per cent average increase was largely buoyed by grain sector expansion in the north, as well as activity from non-traditional buyers in the south. While competition for available farmland also increased prices in other regions, farmland on the outskirts of urban centres saw reduced prices due to the general economic downturn. Some adverse weather, as well as depressed oil and gas prices, placed downward pressure on farmland values, while large farm expansion and competition
between beef and grains sectors in some areas helped boost the value of marginal cultivated forage or pasture acres.
Average overall sale prices have increased in Drumheller. This time last year there were 16 sales with an average sale price of $176,664. So far in 2017 there have also been 16 sales, but with an average price of $201,275. Drumheller has 91 homes for sale on the MLS right now as well as many homes being sold privately.
Average sale price for in Drumheller has seen a significant drop from this time last year. This was partially due to the sale of some older smaller homes. The average sale price for the first 9 months of 2016 was $210,500 with a total of 80 sales. 2015 had 82 sales for the first 9 months. There are currently 95 homes on the market. This is considered a surplus.
The average value of Alberta farmland increased 11.6% in 2015, following gains of 8.8% in 2014 and 12.9% in 2013. Values in the province have continued to climb since 1993. The majority of the province experienced a steady increase in farmland values throughout the year. The continued positive outlook on agriculture resulted in many producers purchasing land for expansion or to support succession planning. Agricultural land price increases were observed in northern, eastern and southern portions of the province, largely due to strong pulse crop prices. Continued strength in beef prices resulted in increased demand for land used for grazing in cattle producing areas as well. There were localized areas that started to reflect the impact of the downturn in the resource sector or appeared to have reached the point where the demand for cultivated land lessened.
Despite the downturn in the oil and gas industry, the average house prices rose 0.4% to $244,429 in 2015. There were 98 sales, a significant drop from 124 overall sales in 2014. There are presently 59 houses on the market. There were 16 sales over $350,000 and two sales above $500,000. Hanna had 29 sales in comparison to 38 sales in 2014.
The Realtors Association of Alberta has seen less Real Estate activity with a drop in the number of overall sales from 440 sales for the first nine months in 2014 to 323 for the first nine months in 2015. This includes Drumheller, Hanna, County of Newell and areas covered by board members. Real estate has slowed in response to the low oil prices and a downturn in Alberta oil and gas industry. In Drumheller, 82 house sales average $241,000 down 9.1% from last year at this time. There are currently 60 homes in Drumheller on the market.
Alberta farmland values increased an average of 8.8% in 2014, following gains of 12.9% in 2013 and 13.3% in 2012. Values in the province have continued to climb since 1993.In southern Alberta, demand for irrigated land remained strong, especially from specialty crop producers looking to expand contracts. Traditional crop producers sought to purchase irrigated land due to the higher commodity prices seen in the first half of 2014. Dry land producers also contributed to a steady demand for farmland due to higher commodity prices and general optimism in the area.Strong beef prices have increased the demand for pasture in the more
traditional beef areas throughout the province. This was especially prevalent in the central to northern east portions of the province.
In Drumheller, 18 house sales have averaged $255,250 which is up 12.8% from last year this time. There are presently 75 homes on the market in Drumheller. The average days on market for these 18 sales was 124 days. Hanna had 5 house sales averaging $212,800. With oil trading at around $50 dollars a barrel we may see a softening of the housing market in 2015.