It is still a good time to buy real estate in Red Deer. While summer sales continue to cool down from the high point of May and June there are many market indicators that say we have have a stable balanced market. Driving around Red Deer you get a sense that business is stable. New home construction is solid, plenty of road work and infrastructure projects on the go, and Oil has been quite stable at $65 to $71/barrel. Gas has strengthened somewhat but still weak compared to where it was and probably where it should be. We certainly are not immune to economic changes, however we have been positioned here in Red Deer such that we are more insulated from the dramatic swings.
The trend to watch seems to be the gradual increase in inventory that is occurring as sales numbers decline. While this is not an alarming trend it is something that we should take note of. Much of this trend is seasonal and the inventory levels we are at today, 610 active listings, is a similar level to that experienced in February and considerably lower than than the peak of inventory in May of 671 listings in Red Deer.
With plenty of homes to choose from Buyers today can choose the home they "want", and for the the most part negotiate terms favourable to them. While sellers today can indeed sell their home but they need to be grounded in their expectations and realistic in the asking price.
The absorption rate is the rate at which properties are being sold. How long would it take to sell the 610 listings presently on the market if we did not take another listing? That rate is 610 Listings/32 sales week = 19 weeks or 4.75 months. Not bad at all and in many areas this number is considered low and an indicator of a balanced market.
AS always ups and downs occur as noted above. The rise of sales in Red Deer is very much seasonal as it is in other ares of the country. Fortunately the interest rate remain low and affordable for buying. Now is a good time to enter the market or move up to that home you want.
Your Friend in Real Estate,
All stats based on information provided from the Central Alberta REALTORS® Association.