Market inventory climbing too fast – Red Deer

sellers don't sell now

Considering a home purchase or a revenue property in the near future?

Important notice for people who may have interest in buying a property in the near future. We will see property prices drop if listings continue to flood the market. Watching closely I’m seeing new listings hit the market at a rate as high as 3 times the number of sales.  We are witnessing listing numbers exceed sales numbers substantially week after week.too many homes on market

Demand for properties won’t increase as we head into the summer months but with supply running rampant there’s an imbalance. The theory of supply and demand states – if demand stays the same or decreases while supply increases prices will drop. At the rate we’re going property prices in Red Deer will decrease further before they improve.

This is a tip to people planning to buying property in the near future. BUY NOW. The price drop won’t be huge but it will stagger slightly over the next few months. And right now, with interest rates still at silly low rates, it’s the most opportune time to buy to capitalize.

My advice for anyone planning to sell is DON’T. With inventory rates currently so high and climbing you will get the lowest price for the sale of your home over the next quarter.
However, don’t worry to much. The real estate market would be in terrible shape if the price drop was due to there being no buyers. The current market is still very active, there are lots buyers out there but there are way too many homes on the market. The good news is, this problem will correct itself as properties priced right sell and the rest gradually expire.

Call if you would like more information on strategic buying and selling based on sales and inventory rates. Monitoring and understanding these numbers are how investors and smart buyers make the best decisions.

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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.