Market review first quarter 2008

Welcome to April!

The beginning of spring for most of us March still feels like winter despite the first day of spring. How are we doing real estate wise? Is the market up or down? What can I expect?

You can expect more of the same for Red Deer. For the most part sale prices have levelled off. The median sale price has been static at $325,000 with the exception of the last few weeks which saw a jump in the median sale price to $335,000. A spike that we're watching with interest to gauge if we're slowly climbing again. From my earlier reports the median was similar and stable at $325,000 for January, February and March. The activity jumped and the buyers were out the last weeks to make a difference.

 

What does this mean? In my opinion it looks like we've levelled off and that if you are buying today you can do so with confidence. One of the top questions we get is "Should I wait for the market to go down more before I buy?" First off real estate is a long term investment and you will see short term blips. However the stats indicate that the market remains stable and strong and at this time there is no indicator to cause concern for a market decline.

More an averages type of person? The averages are below, note that the average tends to be higher and is more influenced by a few large numbers than the median.

The average dropped from February $7,000 or 1.86% which is a different view than the median. Why is that? Well Most sales seem to be falling out around that $335,000 range however there was more higher end stuff selling which impacts the average.


When put in a picture format as above, you can see that on average we are asking more than last year and the sale price is higher than last year and short term this may be higher or lower than the previous month and or week. Over all the trend appears to be that we have levelled off and may in fact be seeing a slight strengthening to the price. We'll continue to watch this.

But why is there so many houses on the market and why are they on the market for so long???

Short and simple explanation is we have an increased supply and more sellers than buyers. every month new listings come on and that number is higher than the number sold. So if you are planning on selling you need to be price competitive. If your are buying you have the luxury of selection, buying power, and negotiating strength. However, do not be surprised if you find the perfect property and find yourself bidding to get it. That still happens.

For the month of March the number of single family homes newly listed for sale was 253, compared to 112 sales. We have a sales ratio of 44%. If you're planning on selling do you want to be in the 44% that are sold or the 56% that are not?

More questions on real estate feel free to give us a call.

Your Friend in Real Estate

Patrick Galesloot

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