Each month’s price average can be skewed. It only takes a few more high priced homes, more than the norm, to sell and skew the average. That’s why to determine whether prices are actually increasing or decreasing we need to consider the monthly averages together over a length of time.
To track the Central Alberta real estate price average I use a running average of the last 12 months and the last 4 months. Both indicate which direction prices are heading and when they both increase there’s a good chance we are witnessing a positive trend.
What has caused the 12 and 4-month running averages to both have increased this month? The cause is the result of 6 of the last 7 months average prices increasing.
It’s been a roller coaster ride since 2014 in Central Alberta but I hope we are finally witnessing a positive price trend in the market.
Maybe I shouldn’t post good news like this with a risk of jinxing the trend, so we’ll just have to wait a few months to see if it continues.
What can help cause prices to increase? The local inventory numbers and the “months of inventory” for sale in a market. To see the inventory rate throughout Central Alberta stop in at www.HomeScope mid-month each month and check the results – http://www.homescope.ca/red-deer-central-ab-real-estate-news-months-of-inventory-m-o-i-is-high-everywhere-what-it-mean/