2019 home sales in Red Deer finished strong with sales in November up 23% and Decembers up 20%. These are substantial sales increases two months in a row considering sales have been generally decreasing each year since 2014.
The two big months at the end of this year might not sound like a big deal but they could very well be if you we look closer at the total sales trend over the last 5 years.
Since 2014 homes sales have decreased each year and there appears to be nothing positive about that unless you look a little closer. Each year since 2014 sales have decreased but each year they’ve decreased less. In 2015 home sales decreased by -16.2% over 2014. In 2016 they were down another -8.4%, 2017 -6.7%, 2018 -6.3% and in 2019 homes sales – just in – were down only -2%.
From the numbers above notice sales decrease a little less each year. Over the last 5 years, home sales have decreased at an average of -3.6% each year and this year they came in almost equal to last year’s numbers. Could these numbers indicate the direction our market might be heading? Yes, and if the average continues we could see 2020 home sales exceed 2019 by at least 1.6%.
Even though our economy isn’t in great shape, some of the economic strife and market disturbances we’ve experienced over the last 5 years are behind us and impacting our economy less and less.
In 2020 homeowners could very well see their equity position improve again… it’s been a while.