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

red_deer_inventory_of_homes_for_sale

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!
Slow sales throughout Central Alberta are causing high inventory rates. Only Sylvan Lake and Penhold have improved this month but not significantly. Blackfalds and Innisfail are seeing extremely high inventory rates. 

Even right now in Red Deer, with the number of homes on the market lower than they’ve been all year, extremely slow sales have caused an M.O.I. (months-of-inventory) rate higher than it’s been in years! This will have an impact on prices in the new year if sales remain slow and inventory climbs like it usually does at the start of the year. If you are planning to sell in the next 6 months understand the impact a high inventory rate has and understand the need to strategically plan. I’ve drafted a plan based on what’s happened with inventory rates over the last few years and 2018’s real estate dynamics. If you need to discuss the critical approach required to maximize home selling result in 2019 call (403) 350-7672.
!IMPORTANT READ!

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.

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

buy low priced real estate central alberta with blake king realtor

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.

Apr 16, May 15, June 12, July 16, Aug 14, Sept 11, Oct 11, Nov 11th, Dec 12th 2018 – click the link above for previous months m.o.i. numbers. 


Red Deer properties currently for sale – 440/500/523/529/513/504/470/414/361
avg # of homes selling ea. month – 65/78/90.5/96/87.5/81.5/75.5/68/51    
M.O.I. currently for sale in Red Deer – 6.8/6.4/5.8/5.5/5.9/6.2/6.2/6.1/7.1 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • inventory drops -13% but sales drop -25% causing a spike in m.o.i.!

Penhold properties currently for sale – 31/34/32/34/37/35/28/28/22
avg # of properties selling ea. month – 3/5/5.5/5.5/5.5/4/3/3.5/4                 
inventory currently for sale in Penhold – 10.3/6.8/5.8/6.2/6.7/8.8/9.3/8/5.5 months inv.

  • (level 1) moderate buyers market  (5 – 6.5 months)
  • inventory drops -21% and sales improve 14% giving Penhold a sharp m.o.i.!

Sylvan Lake properties currently for sale – 146/167/175/167/151/136/123/119/108
avg # of homes selling ea. month – 21/21/18.5/15/20.5/21/15/14/14
inv. currently for sale in Sylvan Lake – 7/8/9.5/11/7.4/6.5/8.2/8.5/7.7 months inv.  

  • (level 2) steep buyers market  (6.6 – 9 months)
  • inventory corrects itself a bit but sales remain low.

Blackfalds properties currently for sale – 125/131/133/133/127/112/117/115/104

avg # of properties selling ea. month – 12/21.5/25.5/19.5/13/14/14.5/12/8.5
inventory currently for sale in Blackfalds – 10.4/6.1/5.2/6.8/9.8/8/8/9.6/12.2 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • emergency inventory levels in Blackfalds with sales slow! 

Lacombe properties currently for sale – 109/124/122/126/110/108/101/93/75
avg # of properties selling ea. month – 8.5/12/15.5/16/18/19/17/13/9.5     
inventory currently for sale in Lacombe – 13/10.3/8/7.9/6.1/5.7/5.9/7.2/8 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • inventory drops -19% but sales drop -27% causing increased m.o.i.!

Innisfail properties currently for sale – 63/68/79/79/69/62/53/60/58

avg # of properties selling ea. month – 10.5/10/7.5/9.5/8.5/10/11/7.5/4.5   
inventory currently for sale in Innisfail – 6/6.8/10.5/8.3/8.1/6.2/4.8/8/13 months inv.

  • (level 4) extreme buyers market  (13+ months)
  • emergency inventory levels in Innisfail with sales slow & inventory high!

Ponoka properties currently for sale – 63/68/80/74/63/67/55/46/50
avg # of properties selling ea. month – 10.5/10/9.5/8/6.5/6/6/7.5/6 
inventory currently for sale in Innisfail – 6/6.8/8.4/9.3/9.7/11.2/9.2/6.1/8.3 months inv.

  • (level 2) steep buyers market  (6.6 – 9 months)
  • Inventory increase and sale decrease doesn’t help m.o.i. 

Stettler properties currently for sale – 46/51/52/55/61/59/52/46/40
avg # of properties selling ea. month – 6/6.5/4/7/8/6.5/9/8/4     
inventory currently for sale in Stettler – 7.7/7.8/13/7.9/7.6/9.1/5.8/6/10 months inv.

  • (level 3) advanced buyers market  (9.1 – 12.5 months)
  • Inventory only dips a little while sales drop 50%! Ouch! 

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.

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

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.

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