Alberta
is the talk of all my friends and relatives from out of province. After escaping to the Okanagan for a family
holiday, I heard over and over "How's the market?" or "Market is
declining now?”
So what is going on here in Red Deer?
Lots!
The biggest recommendation I can make to clients is to be
informed and have realistic expectations regarding time on market and
price. Long gone is the day where the
price was the starting price, and increases in value were measured as an hourly
rate. However, conditions are ripe for
buying and selling in Red Deer
and area.
So far this month in Red
Deer, there has been 159 properties sold this month
with an average sale price of $314,346, and an average days on market of 36
days. Compared to the same time frame in
August 2006 we are selling more properties.
That’s correct more!
From August 1 – 27th, the date at which I am
researching this data, in 2006 there were 145 reported sales, an average price
of $250,490 and days on market of 23.
Don’t let the rumor mill sway you from buying today. In fact the time is fantastic for
buyers. The interest rates are still low
at 5.74% for 5 year rates with anticipated rate increases having been put on hold. The financial reports from the province state
that we have a surplus. Not just a
little one either, this despite large increases in spending by the province.
On a local level, Penhold is the little town that can. Penhold has been lagging behind in growth in
comparison to Blackfalds, and Sylvan
Lake, but 2007 is Penhold’s
year. The Red Deer Advocate recently
reported that there is a “Penhold building boom”. They are currently experiencing a 260%
increase in building permits from 2006.
Penhold is not standing still at that either with plans to annex more
land, and aggressively pursue major infrastructure for schools and recreation
as well as commercial and industrial.
The biggest benefit to buyers today from 2006 is
selection. The market is definitely more
competitive with more offerings for buyers in every price category. Buyers can breathe, and make a decision this
year. A welcome change from last years
bidding frenzy.
Those conditions were
exciting for sellers no doubt, but this year it is equally as exciting. Today sellers have the luxury of trading up
or downsizing without hesitation or fear of homelessness. Many residents in 2006 were skeptical of
selling as it was indeed hard to find a home.
In 2007 we are seeing more and more home owners moving up with
confidence.
Other notable indicators of a healthy economy, as reported
from the provinces economy update:
- New
motor vehicle sales in Alberta
rose by 3.4% in June
- Alberta’s shipments still rose by 3.8%
in the first half of the year, mainly due to increases in petroleum and
coal and chemical products.
- Nymex Natural Gas C$/MMBtu
* September Contract August 17, 2007 $7.55, up from August 10, 2007 $7.09
It’s a great time to live in Alberta and call it home. If you have any comments or questions feel
free to send them my way.
Move with confidence call us at Century 21 Advantage today.
Your Friend in Real Estate,
Patrick Galesloot