Lethbridge's housing market sees spike in home buyers from across the country

Home buyers turning to Lethbridge market Out of province home buyers from high-priced markets are turning to smaller cities like Lethbridge, where real estate is buzzing.

A Lethbridge realtor says hot housing markets in larger cities across Canada are boosting home sales in the southern Alberta city.

"We have seen an increase in people looking for homes in Lethbridge from Calgary and Edmonton,” said Jennifer Brodoway with LethbridgeRealEstate.com.

Kevin Schoenewolf used to live in Vancouver but he and his wife just purchased a single-family home in Lethbridge.

"My wife and I were expecting our first child so it got us thinking of buying a new place,” Schoenewolf said.

"My brother mentioned that you could buy a place in Lethbridge for under $500,000 and I didn't even believe him."

Schoenewolf says their home cost around $500,000 but would have cost four times that amount if it was in Vancouver.

"Where I was in Coquitlam, just outside of Vancouver, you needed about $2 million to get an equivalent house like this," he added.

Brodoway says Schoenewol and his wife are among many moving to Lethbridge because of the housing prices.

"We've got, recently, a large influx of clients from B.C. and Ontario who have sold their homes for, often, more than one million dollars and are buying houses here with cash," said Brodoway.

According to the Alberta Real Estate Association, 260 homes were purchased in March of 2022, a 17.1 per cent increase from March of last year.

The association reported 356 units in inventory in March, more than 34 per cent lower than last year's levels and the lowest level seen in March since 2007.

Brodoway added there’s nearly a $250,000 difference between houses in Calgary compared to Lethbridge.

She says homes in Calgary tend to see around 10 competing offers, whereas homes in Lethbridge see around four.

"Most of the time, listings are selling within 30 days," she said. "A lot of listings are getting multiple offers with only a few days on the market."

Brodoway says there's a number of reasons for the increased demand including lower interest rates and individuals working from home who are looking for more room in their current house.

"I think during the time of COVID there was a lot of people who were going on vacation, they didn't eat out and so they saved up a lot of money that they could use towards a down payment," said Brodoway.

However, Schoenewolf says the price of a home isn't the only driving factor for moving to Lethbridge.

"It’s the price of everything. Everything is cheaper here. Gas, insurance and pretty much everything that I’ve bought so far has been cheaper over here," he said.

In March, the average price for a home in Lethbridge was $341,435, up more than 5.3 per cent from the same time last year.