*disclaimer – the last two months Red Deer home sales reports, including this as one, stated “single-family detached home sales were up,” it should have read “residential single-family home sales were up.” “Single-family detached homes” is a more specific group of homes that don’t include townhomes and duplexes etc. I wanted to make this disclaimer so there was no confusion.
We had a good run. For the last 5 months, home sales in Red Deer were higher than the same months a year prior. Some might say it’s not normal for that to continue but with sales decreasing each year since 2014 we expect to see better sales.
Why aren’t sales higher in May 2018 like they were the months prior? With so many variables involved it’s hard to pinpoint what causes a slowing of sales, but if I was to speculate I would attribute it to many of the purchases over the last few months being due to buyers rushing to make their purchase before interest rates increased again. So, some purchases that may have happened gradually were hurried into the start of the year.
Will sales continue to be lower than 2017 through the rest of the year? I predict they won’t be consistently lower each month but we won’t see sharp increases either. I predict sale will be higher as a whole in 2018 compared to 2017 but only slightly, 8-10% better.
In addition to charting sales in Red Deer, below are sales this month compared with the same month a year prior in the smaller communities surrounding Red Deer.
Single-family home sales, May 2017 over May 2018, towns and cities surrounding Red Deer, Ab
Blackfalds 2017 (27) / 2018 (28) up 3.6%
Penhold 2017 (7) / 2018 (5) down 28%
Innisfail 2017 (11) / 2018 (11) even
Lacombe 2017 (24) / 2018 (25) up 4%
Rocky Mount. House 2017 (11) / 2018 (9) down 18%
Stettler 2017 (9) / 2018 (5) down 44%
Sylvan Lake 2017 (23) / 2018 (27) up 18%
4 of the 7 towns compared above saw equal or better sales this year than last. With only some of the towns surrounding Red Deer witnessing lower sales, we can assume the market is doing a little better than a year prior.