The rush to sell is slowing down in Red Deer Alberta, and the real estate activity remains strong however the real story is the impact of supply and demand. The demand for housing is closer to 2004 levels today, and a mere 52% of the record demand of 2007.
Presently Red Deer has 650 homes on the MLS market for sale, compared to the 123 that sold last month. What that means is 1 in 5 homes sells each month. When compared to new listings the ratio of sales to new listings is 43.46%. What that means is that if we do not account for the homes presently for sale 43% of the new listings are selling while the other 57% would remain "un-sold" on the market.:
You can see that March 2006 the gap between new listings and sales was the smallest. This was our "heated" seller's market place. Since 2006 that gap has swelled to today's level.
The importance of pricing and condition is as strong as ever. For those looking to test the waters and see if a buyer would be willing to pay "their" asking price, are wasting efforts. Detailed knowledge of what homes have sold for and what your competition is doing (similar homes for sale) is your best tool today. Make certain the REALTOR® you choose is a Local Expert and full time one at that.
You can make the "sold" list. While it may seem grim or bleak, but the truth of the matter is that homes are selling. March 2009 sales were the 6th highest on record.
What price ranges are sales occurring?
Sales are occuring in all price ranges, and what is most interesting is the contrast in March sales to January and February. January and Februray sales were more tightly grouped with peaks in the $300,000 price range, and March as you will note below has larger sales volume in more prices ranges.
Sales in more price ranges is a strong indicator that peopel are moving up. This is a positive sign for those looking to move from their starter home to a larger or newer home. It can be done. With the right team working for you and armed with the skills to apply market knowledge you can take advantge of today's low interest rates and market conditions.
Your Friend in Real Estate,
All market stats from Central Alberta REALTORS® Association MLS® stats