Category: Market News

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.

https://www.fcc-fac.ca/fcc/about-fcc/corporate-profile/reports/farmland-values/farmland-values-report-2014.pdf

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.

In 2014 Drumheller had 124 sales of homes with an average sale price of $244,300. This was very close to last years average of $243,911. Drumheller had an average days on market of 143 days. At year end there were 61 homes for sales on the market. Rural Drumheller had 34 sales with an average of $163,700. Hanna reported 38 sales averaging $162,166. Information was provided by the Realtors Association of South Central Alberta.

The Town of Drumheller had 98 house sales so far in 2014. The average sale price is $245,471 which is an increase of 3% for the same period last year. The average days on market was 128 days, in a strong market 90 days on market is considered reasonable. Rural Drumheller area had 24 sales with an average price of $172,658.

Alberta farmland values increased an average of 12.9% in 2013, following gains of 13.3% in 2012 and 8.7% in 2011. Much of this increase occurred in the first half of the year. Values have continued to rise in the province since 1993. The strong agricultural commodity prices in the first half of the year along with increased oilfield activity spurred confidence in the economy. Land prices either increased or remained steady throughout most of the province. Location and availability were the main price drivers. Competition for land caused prices to increase along the Highway 2 corridor, particularly for agricultural holdings. This reflected continued optimism in agriculture. Southern Alberta continued to see high demand for irrigated land from specialty crop producers looking to secure contracts and traditional crop producers seeking irrigated land for production. Demand from producers looking to expand their land bases toincrease efficiencies also drove up farmland values

Source: https://www.fcc-fac.ca/fcc/about-fcc/corporate-profile/reports/farmland-values/farmland-values-report-2013.pdf

In the past three months Drumheller has seen 23 sales. The average sale price of these re-sold homes was $226,870 which is lower than the average of $261,079 from the homes sold at this time last year. There are presently 80 single family homes for sale in Drumheller and there is an average of 8 homes sold per month indicating a 10 months supply. This is a general over supply of homes.

http://www.cmhc-schl.gc.ca/odpub/esub/64695/64695_2014_M01.pdf

Alberta had a total of 15,193 housing starts in 2012 and 16,308 housing starts in 2013. An increase of 7 percent. Other dwellings not considered single family detached dwellings had a total of 15,413 new builds in 2012 and 16,685 in 2013. This is an acreage of 8 percent.

The town of Drumheller show that the average sale price for a single detached home average $243,911 with 102 sales in 2013. There was 105 sales in 2012 with an average sale price of $234,785. This is an indicator of a fairly stable market. Drumheller presently (January 1st, 2014) has 79 single family homes for sale and there is an average of 9 sales per month. This indicates almost a 9 month supply of homes on the market. The Town of Hanna had 33 total sales with an average sale price of $132,503.