Red Deer single-family home sales this June took a dive in comparison to June 2018. This shouldn’t come as a surprise however because single-family home sales have been lower than they were in 2018 five of the last six months, and nine of the last ten months. Looking back even further, sales have been lower 15 of the last 24 months… ouch!
Should we worry about the slowing? I don’t think so, what’s essentially causing the slower sales are slow sales and eventually, we’ll see it gradually normalize.
The questions I hear most over the last few years are, is it a good time to sell, is the market improving and should I wait to buy? We have a lot of potential real estate transactions sitting waiting because the market hasn’t improved, and strangely enough the combined waiting is contributing to the stagnancy of the current market.
Remember, a large portion of buyer are homeowners who need to sell before buying. If they don’t see enough money in their potential sale they’ll wait. And if they don’t sell they won’t buy. At the same time, many potential buyers are waiting and wondering if prices will decrease. Both scenarios contribute inversely to what they’d like to happen.
The reason I don’t think we should worry too much about slower sales is that we’re seeing a reasonable inventory level in Central Alberta (also due to all the waiting) and people will gradually make real estate transactions when they get tired of waiting and when they prices improve. People still want to buy a home and we’ll always have homeowners wanting new different homes.
Here’s a look at how sales compare in Central Ab and some of the towns surrounding Red Deer.
Central Alberta – down 23%
Sylvan Lake, Ab – down 12%
Blackfalds, Ab – down 31%
Lacombe, Ab – down 11%
Stettler, Ab – up 83% (6 sales in 2018 and 11 in 2019)
Rocky Mountain House, Ab – down 62%
Ponoka, Ab – down 14%
To keep an eye on local real estate stats visit www.HomeScope.ca each week!