The first half of the 2016 real estate market in Red Deer looked pretty bleak with sales each month registering lower than the year prior. Month after month we witnessed decreased sales in the negative range -14%, -17.5%, -25%… and it appeared as though homes sales would keep decreasing each month.
At the same time as sales were slowing, inventory was climbing. And when both happen a market can stumble. When sales slow there are less buyers, when inventory increases, there are too many sellers – this imbalance leads to price decreases that hurt a market.
Lucky enough, sales started to increase in September of 2016, and for the rest of the year sales were either higher or equal to the same months in 2015. Maybe consumer confidence increased enough to allow home buyers the comfort to start there searching and purchasing of homes.
During the last four months of 2016 inventory also began to correct itself. Not only did sales begin to increase, but seller’s panic decreased. In addition to less sellers panicking to sell, the listing that had been on the market overpriced, began to expire. Home sales increased closer to normal rates and the inventory normalized causing, what I think will be, a good start to the 2017 real estate market in Red Deer and Central Alberta.