Welcome to May! April is always a mixed bag when it comes to weather. We had snow, followed by double digits and temps into low 20's for a brief period, then frigid snow again. We were up and out BBQing, then hunkered down while the chill was in the air. Interest rates mean while remained low, and dropped slightly. Happy home buyers can now lock in for under 4% with rates often below 3.9% for a 5 year mortgage term. All of us old timers can`t believe how low the rates are and how affordable it is to borrow. With the economy still in the dumps in many sectors the government looks like they will hold rates for the foreseeable future. This is a great time to be refinancing or upgrading. Many buyers today are able to upgrade to the home they want while keeping their payments relatively the same. Looking at our monthly stats, buyers were buying with April 2009 being recorded as exceeding 2006 sales levels.
When we started April we had approx. 650 active listings in Red Deer. We start May with 638 active listings according to my MLS® stats for May 1st and 2nd. This could be a significant point for Red Deer real estate. April sales increased to 178 MLS® sales from 123 in March an increase of 55 sales or 44%.
April Vs. April? Was this a normal April?
As far as April being normal in the sales department it looks like we can answer that one as "YES". The other half of the story is listings, new listings vs. sales, and inventory levels. As mentioned above we had a net decrease in inventory levels. The sales to listing ratio is on the rise. Sales are rising, listings are not being carried over for the backlog of inventory is starting to thin out and go down. With the sales.new listing ratio jumping to 59% we are moving into "balanced" market territory from a strong buyers. Yet another indicator to the fence sitters that were waiting for "the bottom" I think you may have missed it. That's the thing with wanting to buy at the bottom, you never know when you hit bottom until it passes.
Buyers still have the benefit of inventory to choose from and amazingly low interest rates. If you're ready to get off that fence and take advantage of market conditions give us a call. (403) 346-0021.
Your Friend in Real Estate,