Are you considering buying or selling a condo in Red Deer?
Yes? Well you've probably wondered if there is a "condo" market. There is and we generally group them more specifically into "Apartment Condos". The Central Alberta REALTOR's® Association groups the data more so by style than type of ownership (A condo is a form of ownership).
The Apartment Condo Market in Red Deer has seen a lot of growth in new development much like the residential housing market. With the size or scale of these developments it is possible to react to demand and subsequently result in over supply.
The abundance of supply right now is partly a result of the fuelled development that occurred to market reactions in 2006, 2007 and to some extent 2008. Not to much difference in the housing market. The key difference is that it is easier to slow down the building of new houses than it is to put the brakes on a multi suite facility. Ask your REALTOR® about the status of some of the developments around Red Deer. There are some that I would recommend taking a closer look before investing.
So how have prices for Apartment Condos been performing?
As you can see above, prices for Condos have experienced similar trends as the rest of the market. Please refer to my earlier post on the Red Deer Real Estate Market. The peak for prices was in 2008 after rapid growth in prices for 2006 and 2007. 2009 experienced a 7.7% decrease in average sale price and a 11% decrease in the median sale price.
Listings are out pacing sales by far. The price of the apartment condos is a reflection or reaction to supply and demand. So you can see that pricing changes are not a quick response to supply and demand changes but rather a delayed reaction. The sales to listing ratio slowly began to widen in 2007 to the present state. Based on the increased supply on the market price will indeed feel the pressure. How fast or how much is yet to be seen. I personally don't see prices moving to the upswing for a while in this market segment.
The number of transactions on a weekly basis and monthly basis for Red Deer's apartment condo market is not very high so it is difficult to see what is happening in teh short term.
If you have any questions on the condo market and how this affects you, please feel free to contact us for a private consultation. It's really hard to answer the question "should I buy now? or should I sell now" without knowing more about you. Depending on your needs and your situation today may in fact be the ideal time. You can certainly position yourself for a successful real estate sale or purchase today with the right guidance and market knowledge. Talk to your REALTOR® before making your next move. friend
Your Friend in Real Estate,
Patrick is not a Twit but he's on Twitter at: @pgalesloot
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