Two comments or questions asked of us that we hear most often today:
- "Is the market going down more?"
- "I'm waiting for the prices to come down further"
Quite often people are surprised when I mention that houses are selling. I think too many people are listening to CNN or Canada Am, and getting national news or news from other regions mixed up with local news. The reality is yes homes are selling and yes it is still a buyers market. February experienced the fourth highest sales volume for MLS sales. Sellers today have to be price competitive and if they are their home will have an increased probability of selling. Not all price ranges are selling at the same rate, so to generalize that "I read that it is picking up" would not be in your best interest. You need all the facts and news articles and Blog posts share only portions of the market at a time.
What price ranges are selling?
As you can see all price ranges are seeing some movement (the above is for MLS sales from Jan. 01 - March 19, '09), however the main activity is centered around $300,000 today. In fact we do encounter multiple offers when homes are priced just right. Buyers are searching for a good deal. When a good deal is spotted more than one person are interested. Yes there is pressure on price. The old supply and demand influences price daily. How much will prices go down? Will they level out and when will they go back up? I'm sorry to say that my crystal ball is not all that clear on that one. Expectations are that prices for 2009 will be down 3% to 5% from 2008 levels. If you are looking to sell a higher priced home there are less buyers today so it will take longer and be more of a challenge unless you are willing to price your home where the buyers are.
The above graph illustrates sales volume by units for the month of March so far for the city of Red Deer. There have been a total of 78 sales this month, while we presently have 624 properties listed for sale (12.5%). In February there were a total of 87 single family home (houses) sales. Today we have 366 houses for sale in Red Deer. The odds of selling today then are 25% or 1 in 4. The odds are not even across all price ranges. Your chances of selling go down as price goes up.
How do you become that 1 that sells?
- Price has to be bang on or better. Now is not the time to be fishing for that one buyer that will pay more.
- Be show home ready as much as possible.
- Be open for business. Do not set exclusive hours for viewings. Why make it hard for buyers to see your home.
- Get your home seen and marketed professionally by a Realtor that knows your "Local" real estate market.
We have detailed steps and more in-depth approaches to looking at the market and getting your home sold. If you are considering a move we can help. Call or email for a sellers consultation. We will evaluate your property free of charge and discuss with you how your home can become "SOLD" in today's competitive market. The top two Realtors in Red Deer work with Century 21 Advantage, so should you.
Your Friend in Real Estate,
Stats are from the Central Alberta Realtors Association MLS. Numbers are for the City of Red Deer unless otherwise indicated.