Saturday May 31, I had the pleasure of speaking to the attendees at the community breakfast. There were approximately 60 residents in attendance. The topic of discussion was that of an economic update with myself being asked to give a Real Estate update.
I'm always happy to discuss real estate and changes in the market place with home owners so I enjoyed the opportunity to do so.
The house prices in the area have risen substantially over the years. Our data from the MLS board goes back to 1989. Back in 1989 the average house sale price in Penhold was $57,071. Springbrook was still operating as CFB Penhold. Penhold was and still is an affordable alternative to the larger City of Red Deer. Red Deer's average sale price in 1989 was $95,459.
Jumping to the first recorded MLS sales data for Springbrook in 1997, the average home sold for $61,425 in Springbrook. At that time the sales consisted of townhouses and half duplexes. Penhold's average sale price of houses was considerably higher at $86,432. Still more affordable than bigger brother Red Deer. Red Deer's average sale price for single family homes in 1997 was $131,499.
In 2000, sales and new development were occurring in Springbrook, as we entered into a prosperous new Millennium. Springbrook's single family homes sold for an average of $112,777 in 2000. Very close to the level of the more established Town of Penhold's average house selling price of $115,257. Again Red Deer maintained that $40,000 difference with sales average in 200 reported at $157,993.
So from 1989 to 2000 or the 90's, house prices in Red Deer climbed 65%. This is pretty substantial growth during a time when we were not in experiencing a "boom". Penhold's prices doubled over that same decade (101.95%).
- Average House Price in Penhold, 2006 $216,322
- Average Price In Springbrook, 2006 $211,537
- Red Deer, 2006: $293,344
2006 was a "hot" sellers market year.
2007 was a transitional year and looked like:
Which led to todays market which for many is considered a correction.
- Average House Price in Penhold, 2008 $293,403
- Average Price In Springbrook, 2008 $271,607
- Red Deer, 2008: $352,980
2008 is shaping up as a strong buyers market year. Perhaps more catching up to the changes and growth. We'll continue to monitor the situation and keep you informed. The charts are good visual aids in seeing the changes in the market and how the differences in "inventory" makes for the "sellers" and "buyers" markets.
We also heard from Town of Penhold Councilor April Jones, and community leader from Springbrook Paul Pettypiece.
Both community leaders highlighted some of the initiatives both communities are working on. Such as expansion of services and upgrades to the Red Deer Regional Airport in Springbrook. April Jones with the Town of Penhold took us on a journey of history and future glimpses. It made for an entertaining as well as informative presentation.
Your Friend in Real Estate,