Despite a drastic slow-down on the market when COVID hit in March, real estate in the Foothills has seen a steady rise since June that’s led to unprecedented summer activity.
Ordinarily the market slows in mid-June after a flurry of activity from March to May, picking up again with another burst of action from September through November, said Okotoks-based realtor Donna George, of Century 21 Foothills.
“I cannot complain, I’ve been very busy and other agents in my office have been busy,” said George. “It’s been nice, it’s been pretty steady.”
She said it’s a good change of pace from March and April, when she and other agents were wondering whether they’d paid the phone bill because it was eerily quiet.
Sellers were nervous about having people come through their homes, and buyers were equally nervous about entering homes, she said. However, that trepidation was calmed with COVID-19 measures that made everyone feel more comfortable with the homebuying process.
Over the past 60 days there has been a surge in activity, primarily in the $300,000 to $400,000 range in Okotoks and with acreages under $800,000 in Foothills County.
“There’s been 51 sales in the last 60 days in acreages and 11 of them have actually been over $1 million,” said George. “So there’s money out there.”
Inventory is down this summer, leading to what George said is a balanced, steady market being driven largely by first-time homebuyers. Low interest rates and lower house prices make those first-time buyers more confident in purchasing, she said.
But they’re in no rush to buy in an uncertain economic climate.
“Buyers are looking, but they just feel no hurry to pull the trigger,” said George. “They’re nervous about the economy and what’s happening but they are still out there buying.”
Okotoks RE/MAX realtor Jay Magnussen has had a similar experience with the COVID market.
“We had a small downturn but not nearly as dramatic as I thought it would be,” he said. “It’s actually been fairly good – interesting, we’ll say.”
He said a lot of the action in the second quarter of the year came from irons set in the fire months ago, and those buyers or sellers who had no choice but to relocate.
Homes priced right – especially in the $300,000 to $500,000 range – are moving steadily, he said.
“Higher-priced luxury homes have been a little harder because they’re ‘want’ homes versus ‘need’ homes,” said Magnussen. “But that mid-range has been very steady.”
Saba Ishaq listed one of Okotoks’ luxury homes on Jan. 1 and said it’s still on the market, though the price has dropped from $810,000 to $779,000 over the last eight months.
There was a dramatic shift in activity before March 15 compared to the last three months, he said.
“We were getting showings, our realtors were doing open houses, we were getting a lot of action on the house,” said Ishaq. “Then COVID hit and basically from March until the end of June, pretty much nothing. Since then they’ve done a couple of open houses, but not many.”
Ishaq works for a homebuilder and has seen how the industry responded to COVID, noting real estate has been selling in Okotoks and area in June and July but more in the lower price range. Since May his realtors have hosted a couple of open houses that each saw a handful of couples attend but there have been no showings.
He chalks up the lack of action on the home, which backs onto the pond in Drake Landing and has grand features like a triple-car garage, to COVID, the listing price, and marketing.
The agents are relying on the MLS listing and a couple of websites to promote the home, but Ishaq said in today’s climate they need to be more aggressive.
“It’s marketing through better pictures, better virtual tours, 3D tours and social media,” he said. “The realtors having success right now are the realtors that are utilizing all of these tools.
“It will go, it just needs to be brought to the attention of the right person.”
Krista Conrad, OkotoksToday.ca
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