Red Deer & Central Ab real estate news. Months of Inventory (M.O.I.) in June 2018

red_deer_inventory_of_homes_for_sale

Local property “Months of Inventory” – (M.O.I.) rate always impacts real estate buying and selling decisions. Understand why before you buy or sell and real estate.

Red Deer and Lacombe are the only two cities in Central Ab with somewhat reasonable inventory rates. Inventory everywhere else is too high to encourage price improvement. Too many “months of inventory” is cause for concern for homeowners trying to sell or planning to sell, it will negatively affect pricing.

On the other hand, if you’re a buyer you have a very strong advantage in those markets. The right purchase approach with a well-studied Realtor® will get you prime prices on the current real estate for sale.

If you don’t have to sell in a community with high inventory rates, don’t. Too many homes” on the market” will negatively impact home prices and make it even harder for the market to rebound or correct. Selling in a community with a high inventory rate will require a list price at or below perceived value. Only the most competitively priced properties will sell in high inventory rate real estate markets and the others will sit stale. “Sitting stale” can impact the sale of your home in the future too. Be diligent in regard to this when planning a sale!

It would be nice to see inventory rates in the low 4 month range for normal growth. Scroll down for this month’s inventory rates in Central Alberta communities.

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Even with high inventory, homes still sell, but the price is key **list slightly too high and your property can sit for months. Allowing your home to sit “for sale” for months will affect its sale result now and down the road.

When buying or selling property YOU HAVE TO CONSIDER the local inventory numbers. When inventory levels are high, typically prices stay stagnant or decrease. When inventory levels are low, and there aren’t enough homes for buyers, homes will sell faster and at higher prices.

  • (level 1) moderate buyers market  (4 – 6.5 months)
  • (level 2) steep buyers market  (6.6 – 9 months)
  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • (level 4) extreme buyers market  (13+ months)

Below are “single family detached” home inventory levels for Red Deer and some towns in Central Alberta. The average number of properties selling was calculated from the last 12 months of sales prior to June 2017. Using a 12-month average wasn’t portraying an accurate inventory rate because it was not accurately representing actual and recent sales.  Starting in June 2017 the average will be calculated over 60 days (2 months) to give a better snapshot of the current market.

Here is a link to previous inventory numbers in Red Deer and area.

Apr 16, May 15, June 12, July 16, Aug 14, 2018 – click the link above for previous months m.o.i. numbers. 


Red Deer properties currently for sale – 440/500/523/529/513
avg # of homes selling ea. month – 65/78/90.5/96/87.5     
M.O.I. currently for sale in Red Deer – 6.8/6.4/5.8/5.5/5.9 months inv.

  • (level 1) moderate buyers market  (4 – 6.5 months)
  • sales slow for the summer, M.O.I. increases slightly

Penhold properties currently for sale – 31/34/32/34/37
avg # of properties selling ea. month – 3/5/5.5/5.5/5.5                 
inventory currently for sale in Penhold – 10.3/6.8/5.8/6.2/6.7 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • sales remain better helping M.O.I. – Months of Inventory high

Sylvan Lake properties currently for sale – 146/167/175/167/151
avg # of homes selling ea. month – 21/21/18.5/15/20.5
inv. currently for sale in Sylvan Lake – 7/8/9.5/11/7.4 months inv.  

  • (level 2) steep buyers market  (6.6 – 9 months)
  • inventory dips and sales increase
  • Needed market improvement!

Blackfalds properties currently for sale – 125/131/133/133/127
avg # of properties selling ea. month – 12/21.5/25.5/19.5/13
inventory currently for sale in Blackfalds – 10.4/6.1/5.2/6.8/9.8 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • Sales drop even more but inventory dips slightly too
  • Market decline again this month 

Lacombe properties currently for sale – 109/124/122/126/110
avg # of properties selling ea. month – 8.5/12/15.5/16/18      
inventory currently for sale in Lacombe – 13/10.3/8/7.9/6.1 months inv.

  • (level 1) moderate buyers market  (4 – 6.5 months)
  • Market improvement again this month

Innisfail properties currently for sale – 63/68/79/79/69
avg # of properties selling ea. month – 10.5/10/7.5/9.5/8.5   
inventory currently for sale in Innisfail – 6/6.8/10.5/8.3/8.1 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • inventory decreases but so did sales

Ponoka properties currently for sale – 63/68/80/74/63
avg # of properties selling ea. month – 10.5/10/9.5/8/6.5  
inventory currently for sale in Innisfail – 6/6.8/8.4/9.3/9.7 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • inventory decreases but so do sales

Stettler properties currently for sale – 46/51/52/55/61
avg # of properties selling ea. month – 6/6.5/4/7/8        
inventory currently for sale in Stettler – 7.7/7.8/13/7.9/7.6 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • sales improve but inventory does too

The “Months of Inventory (M.O.I.) in your real estate market is one of the most important factors to consider before buying and/or selling your home, but it’s often overlooked. To understand exactly how statistics affect your purchase strategy and how to use them for your benefit when buying, and make money when selling, contact Blake King with Century 21 Advantage (403) 350-7672 or email hello@blakeking.ca

Here is a link to previous inventory numbers in Red Deer and area.

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About the Author

Blake King
Having lived in Red Deer my entire life and having experience in many avenues of real estate I offer enormous value to my clients.