Inventory rates appear high coming off slow end-of-year sales in Central Ab

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Local real estate Months of Inventory (M.O.I.) rate should impact your real estate buying and selling decisions, and it’s important to understand why.

!IMPORTANT READ!

Read and absorb the start of the year inventory stats, especially the small towns, with a grain of salt. Very few sales closed in Dec and fewer the first few weeks of January. Sales will appear drastically slower than they actually are.

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However, we are still in a more difficult time to sell you home. If you need to discuss the critical approach required to maximize home selling result in 2019 call Blake King with Big Earth Realty (403) 350-7672.

High inventory will affect prices, however, on the other hand, if you’re a buyer you can take advantage of high inventory with lower prices. The right purchase approach with a well-studied Realtor® will get you prime prices on homes 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 tougher for the market to rebound. Selling in a community with a high inventory will earn a sale price below perceived value. Only the most competitively priced properties will sell in high inventory markets and the others will sit stale. “Sitting stale” can impact the sale of your home in the future too.

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To encourage normal growth we need inventory rates below the 5-month range. Scroll down for this month’s inventory rates through Central Alberta.

When buying or selling property take into consideration the local inventory stats. When inventory levels are high prices stay flat or decrease. When inventory levels are low, and there aren’t enough homes for buyers, homes will sell faster and prices will increase.

  • (level 1) moderate buyers market  (5 – 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” for sale inventory levels in Red Deer and towns through Central Alberta. The “average # of homes selling ea. month” is calculated using the last 60 day sales.

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

Nov 11th, Dec 12th 2018, Jan 14, 2019 – click the link above for previous months m.o.i. numbers. 


Red Deer properties currently for sale – 414/361/342
avg # of homes selling ea. month – 68/51/36.5   
M.O.I. currently for sale in Red Deer – 6.1/7.1/9.4 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • indication what might happen this year if too many homes hit the market…
  • We haven’t witnessed level 3 in Red Deer for a long time!

Penhold properties currently for sale – 28/22/19
avg # of properties selling ea. month – 3.5/4/3.5                 
inventory currently for sale in Penhold – 8/5.5/5.4 months inv.

  • (level 1) moderate buyers market  (5 – 6.5 months) 
  • Penhold will do well this year if the rate stays low!

Sylvan Lake properties currently for sale 119/108/96
avg # of homes selling ea. month – 14/14/14.5
inv. currently for sale in Sylvan Lake – 8.5/7.7/6.6 months inv.  

  • (level 2) steep buyers market  (6.6 – 9 months) 
  • sales are low but inventory is so far staying in check too. 

Blackfalds properties currently for sale – 115/104/92
avg # of properties selling ea. month – 12/8.5/10
inventory currently for sale in Blackfalds – 9.6/12.2/9.2 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months) 
  • a needed improvement, sales slow, inventory numbers remain low too 

Lacombe properties currently for sale – 93/75/70
avg # of properties selling ea. month – 13/9.5/6.5     
inventory currently for sale in Lacombe – 7.2/8/10.8 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)↓
  • inventory stays low but sale do too!

Innisfail properties currently for sale – 60/58/53
avg # of properties selling ea. month – 7.5/4.5/1   
inventory currently for sale in Innisfail – 8/13/53 months inv.

  • (level 4) extreme buyers market  (13+ months)
  • will really need sales improvement prices will drop fast!

Ponoka properties currently for sale – 46/50/39
avg # of properties selling ea. month – 7.5/6/3 
inventory currently for sale in Innisfail – 6.1/8.3/13 months inv.

  • (level 4) extreme buyers market  (13+ months)
  • sales will correct the next few months and represent a better rate

Stettler properties currently for sale – 46/40/37
avg # of properties selling ea. month – 8/4/2     
inventory currently for sale in Stettler – 76/10/18.5 months inv.

  • (level 4) extreme buyers market  (13+ months)
  • Small town will appear in worse shape the start of each year! 

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

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

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The Months of Inventory (M.O.I.) in your real estate market might be one of the most important factors to consider when buying and/or selling your home and it’s often overlooked. To understand exactly how stats impact your purchase strategy and make you more money when selling, contact Blake King with Century 21 Advantage (403) 350-7672 or email hello@blakeking.ca

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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.