The local housing market is pretty much a mirror of what’s going on in the region and around the province.
According to Rizwan Syed, a realtor with Royal LePage Lifestyles Realty, the residential housing market has been on a downward spiral for the past two years.
Statistics gleaned from the Multiple Listings Service (MLS) show sales in Ponoka for June have fallen by almost 44 per cent over the same month in 2014, while dropping more than 30 per cent from June of last year.
Meanwhile, the number of listings have risen from 118 in July of 2014 to 138 for July this year with sale price ratios dropping slightly over the same period.
“The reason for this decline is mainly the economic downturn in Alberta,” said Syed.
“The oil industry has a direct impact on the residential market.”
In central Alberta, the year over year sales in August fell nearly 14 per cent when compared to August of last year — with just 369 units sold — while the first eight months of 2016 saw just over 2,700 home sales, a decline of 17 per cent over the same period in 2015.
As for new home sales, Syed explained the present market is having an effect on home starts, supply and price.
“Just to give you an idea, I have listed a brand new five bedroom plus office house in Riverside with three four-piece bathrooms for $399,900,” he said.
“My valuation for this house is that it should be at least listed at $430,000 but given the market scenario, the builder wants minimum profits and keep to the ball rolling.”