Well welcome to 2013. The year of good luck.
I am not a guy who believes much in luck. I believe you set your destiny with your effort and good things happen to good people. So do not be wary of the year 13, make it the best year you have well until next year :)
The real estate market was quite good in 2012. Overall in Red Deer we saw an increase in sales of 171 homes over 2011. 2012 saw 1734 sales compared to 1563 in 2011. Most price ranges saw an increase in sales with the price ranges of $300-400K seeing the majority with 127 of the 171 increased sales. Another strong market was the $500-600K range increasing by 25 sales over 2011. The biggest decrease we saw was in the $250-300K range, I believe because a strong 2011 in that price.
Overall we are up in sales and up in average sale price. Our market is stronger than a lot of markets across Canada. We are in a coveted area of Canada, with strong industry and solid real estate prices. I have been saying this for a few years now but fully expect not much change. Central Alberta is strong and if you are thinking of buying a home call me. What I will do for you is show you your options based on your affordability. The biggest mistakes home buyers make is buying the wrong home, a home they cannot afford to maintain. Below are a few suggestions when house hunting.
- Spend what you can afford. Your house costs should be below 40% of your income. Remember you have a life. LIFE WILL HAPPEN
- Be out of debt when purchasing. It does not make any sense to be paying credit card debt at 18-25% to have a lower mortgage. Pay down your other debt first.
- Know the area you want to live. Schools, friends, family and recreation areas matter.
- Find a real estate advisor you trust, someone who is going to tell you when you are making the right or wrong decision.
- Start a rainy day fund. I have heard ‘experts’ say if you plan for rainy days you will get them. I call BS, I have had rainy days without planning for them and its better to be prepared because its going to rain. Your furnace is going to need repairs, your roof is going to need to be fixed, the toilet might leak or someone you love will get sick. Be ready because its so much easier. A cookie jar with $10 a pay is a start but build up the rainy day fund.
I hope I do not sound negative because if you know me you know I am a pretty positive guy. I see good in everything and owning a home is a good and wonderful thing but be ready, get prepared now.
If you have any questions on the real estate market, how to buy your first home or how to sell your existing home to buy another - please do not hesitate to call. I am always willing to help.
Thanks for reading
Ken Devoe – Century 21 Advantage
Follow me on Twitter @kendevoe