House prices affect more than just homes – StrathmoreNow.com
According to Remax real estate, There are a total of 99 houses for sale in Strathmore, with the highest going for $6,999,000.00, the lowest being $114,900 and the average price being $733,394.91.
If we compare that average to prices from December of last year we see that out of 134 homes listed homes, the average price was $464.625.20.
There is a multitude of deciding factors in what increases or decreases housing prices over the course of a year. However, whenever housing prices rise or drop, we can expect the prices of almost everything else to follow suit, including:
- Food prices
- Rent and lease rates
- Lending and financing rates
- Gas and vehicle prices
- Construction development
A few of these can be attributed to homeowners spending large sums of income on financing and mortgages that would have been spent elsewhere or continuing to live in already developed communities and not spending or living in areas that need residents for economic development.
Any resource with a limited supply is bound to jump or decrease in price when another resource of limited supply is drawing profits and consumers away.
One limited resource that is affected by house prices is car financing prices.
The prime lending rate in Canada is heavily affected by both real estate prices and car financing and pricing, so naturally when the prime rate rises so do the prices of both these resources.
However, Strathmore Dodge General Manager Trevor Gonsalves is optimistic about these changes and how they will affect his customers.
“Everything is connected to that change in the prime lending rate. That said, we’ve seen some small changes. There are programs out there for current owners that can take advantage of rate reductions and incentives to help offset that. The big thing we’re seeing is that the equity in the market, with the strength of used car prices, with the strength of the market, is that people are taking advantage of that equity regardless of rate. They are using that to get themselves into a vehicle that has a similar payment to what they’re working with right now. Basically turning the clock back on the car they got.”
On the other hand, Vehicle Sales Manager of Strathmore Motor Products Les Smith has been affected by the jump in the home lending rate in one common area.
“For parts and inventory delays, I don’t think we’re going to see a change anytime soon. Hopefully, by the end of July, we’ll have that all dealt with. A lot of that is because everything is global. The thing that we always have said to people and we continue to say to people is to shop local. We all live here the same as you guys and we try to support our community, so try to support us.”
With prices and anxiety rising across Alberta, time will tell if inflation will continue to impact prices in the province but with some helpful community businesses and some forward-thinking, your wallet might not have to feel so light.
Send your news tips, story ideas, pictures, and videos to firstname.lastname@example.org