Red Deer Real Estate Market Above Average July 2015

Contrary to some misconceptions, the real estate market in Red Deer is not in a decline of drastic or epic proportions.  While we know that the economy and labour market is not robust by any stretch and there is a lot of concern Oil and Commodity prices will keep the overall economy in a downturn.

The Reality of the Red Deer Market:

Yes MLS ® Sales Volume is down 11.5% July 2015 versus July 2014.  However, that only tells part of the story.  I think we all expect "demand" to be lower because of the low oil prices and increase unemployment.  If 2014 were the only numbers we used to gage our progress or lack of, then yes it is not a rosy outlook.

The other part of the story... the Above Average July 2015:  July 2015 MLS® Sales Volume outperformed 2013, 2012, and 2011.

City of Red Deer

Sales Volume:

% to 2015

July 2015

183

 

July 2014

207

-11.5%

July 2013

168

+8.9%

July 2012

158

+15.8%

July 2011

150

+22%

BTW the current 10 year average for July is 172.

Last year we were raving about how strong our economy was, how great the price of Oil was, and how people were moving here and buying a lot of real estate.  Those have changed, but it is not the end of the world for us quite yet in Central Alberta and Red Deer.  While demand this year is low, the supply ( number of listings available) is maintaining a balance in the marker which keeps the price in check.

Month Sales, Number of New Listings, Number of Ratio:
Jan 75 241 31%
Feb 109 232 47%
Mar 157 313 50%
Apr 182 281 65%
May 200 289 69%
Jun 199 289 69%
Jul 183 250 73%

 

In general 50 - 75% Sales to New Listing Ratio is considered a "Balanced Market".  The higher the ratio the more the market is behaving like a "Sellers Market".  The lower the number and anything below 50% is a "Buyers Market".  It is really important that you consult with your Century 21 Professional as each price point, area and community will behave differently during different economic conditions.  Some may be more reflective of a Buyers Market while others will have stronger Sellers market indicators.

Considering a Move?  Contact one of our Century 21 Advantage Associates today for expert advice on whether now is a good time for you  and your family to move. 403-346-0021

 

Patrick Galesloot

 

 

 

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Patrick Galesloot

Patrick Galesloot

Broker/Owner
CENTURY 21 Advantage
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