Year to date sales in Red Deer are almost exactly even with the same period in 2010 which might not seem all that encouraging, but it is important to know that the first 4 months of 2010 were the most active of the entire year. Momentum seems to be building this spring and without any more bad news economically, we should easily outpace last year’s sales.
Listing inventories in Red Deer on the 1st of April are down almost 18% from the 1st of April 2010. That is very big news. We expected inventories to rise almost as rapidly this spring as they did last spring, which hasn’t happened, yet, at least.
The current listings to sales ratio at almost 22% does not quite represent a balanced market, but it is getting close. With the trend approaching balance, prices will certainly be at risk of trending up which is not necessarily a good thing in the long run.
While we all want to see the value of our largest asset appreciate, higher prices lead to lower affordability. Alberta is facing a large worker shortage in the next few years. More expensive housing makes Alberta a less desirable destination for those workers we will need to sustain our high quality of life. High real estate prices aren’t always a good thing.
Another interesting note in Red Deer has been the lack of sales at the high end of the price spectrum so far this year. It seems the more affluent sector has been waiting to make a purchase. It remains to be seen whether that will change as the weather improves.
In Lacombe, sales to date this year are up slightly from last year, but the number of listings is also up 35% which continues to represent a market that favours buyers. The smaller central Alberta markets tend to mirror Red Deer’s eventually, so we don’t expect that situation to last very long.
Sylvan Lake sales are also up year to date over last year and the number of listings is down slightly. The listings to sales ratio still suggests that the market favours buyers, but once again, that ratio is moving closer to a balanced market.
Ponoka’s year to date sales are off slightly from last year, but listings are down an equivalent percentage. Ponoka home prices compared to the rest of our market area represent some of the best values in central Alberta.
Blackfalds year to date sales are up slightly over last year while the number of listings is almost the same. Strong sales levels in March have brought the sales to listing ratio here close to balance as well.
The median sale price of homes sold in central Alberta towns is up from $276,000 to $279,650 from the 4th quarter of 2010 to the 1st quarter of 2011 which may suggest that prices have bottomed out and are showing very small signs of recovery. The median sale price peaked at $307,000 in the 2nd quarter of 2007.
In summary, all local markets still favour buyers, but current trends suggest that may not last for the rest of the year. Mortgage rates are also showing signs of creeping up, so the opportune time to buy is now!
