August sales in Sylvan Lake were up slightly over July’s, but still couldn’t keep pace with last August. Year to date sales are down compared to the same time last year, reflecting the slower economy and less demand for recreation properties while the number of active listings are up slightly. The strength in the Sylvan Lake market continues to be in the under $450,000 price ranges while the higher price ranges languish with excess inventory and slower sales creating opportunity for affluent buyers.
When the economy slows as it has over the past two years, the housing market is surely going to slow as well. Sellers have to adjust their expectations when there are fewer buyers and more competition. Recent sale results provide proof that there are still buyers for competitively priced homes. Very low interest rates are contributing to better than expect market activity.
In spite of some continuing economic gloom, news of falling supply and increasing demand for oil in the world market provides home that prices will get past the magic US$50 mark for good in the coming months. Energy companies have become streamlined and more cost efficient and will be able to generate profits at that price and put some of our unemployed workers back on the job. Ultimately that is what will help get the Alberta economy back on track.