'Cautiously optimistic': Home sales and starts expected to rise in Lethbridge in 2025

Lethbridge home sales and starts are expected to rise in 2025.

Those in Lethbridge's real estate sector are expecting anther busy year, with both home sales and starts expected to rise in 2025. 

In 2024, there wre nearly 2,00 transactions completed, a seven per cent increase from the previous year.

 "I think we're going to surpass that in 2025 with the new interest rates," said Cathy Maxwell, CEO of the Lethbridge and District Association of Realtors. 

Despite more homes being sold, the inventory remained steady in 2024 compared to 2023, with Maxwell calling the market in Lethbridge "tight."

 "I think we're going to see a quick market, and that's not necessarily good for buyers because that's a little bit unnerving to look at a home right now and be able to make a decision right now to be able to buy it."

 In 2024, the average home price in Lethbridge was $392,000. 

Maxwell attributes the increase in home sales to what Lethbridge has to offer.

 "We have a good range of job opportunities, a wide range of work, and we're situated nice in the province – close to the mountains and Calgary. We have both a polytechnic and university, so I think Lethbridge brings a lot to the table and it's being sought after."

 With the sector seeing a rise in sales, housing starts also climbedback toward the 10-year average.

"I would be expecting, optimistically, to see the same trending up, the same sort of housing starts we seen at least this year to continue," said Bridget Mearns, executive officer of BILD Lethbridge.

Mearns says there are several factors to that growth.

"Some of the barriers to ownership are being addressed, like the insurance rates, wage growth is happening, population to the city, so all of those good things that help spur and create housing starts in our city."

One of the leading causes of concern heading into the new year is U.S. president-elect Donald Trump's threat of 25 per cent tariffs.

"It's going to be very difficult to predict, considering what we're seeing south of the border," said Mearns. "Potential tariffs that are going to impact our economy, affect employment and the cost of materials."

What that means for realtors is unclear, according to Maxwell.

"The U.S. just got a second-time new president, and our own prime minister stepped down, what will that do the confidence and desire to move right now? I don't know," she said.

Despite the uncertainty, Mearns is "cautiously optimistic" that 2025 will be another good year for the industry.

"When you have housing starts and you have growth in development, that means you have a healthy economy locally and that's what we want to see," she said.