In August 2019 homes sale in Red Deer were 14.5% lower than August 2018 and they’ve been lower than last year 6 of the last 8 months. I’ve touched on why I think sales are lower in the last few reports but this month we’ll take a closer look and compare some surrounding communities in Central Alberta.
Taking a closer look we see similar stats in each community Blackfalds, Sylvan Lake, Lacombe, and Innisfail. Blackfalds home sales are down 18% with lower sales 5 of the last 8 months. Sylvan Lake sales are down 12% with lower sale 5 of the last 8 months. Lacombe follows the same trend with total single-family home unit sales 7% lower and fewer homes sold 5 of the last 8 months. And Innisfail sales are 15% lower this year over last year with home sales lower 6 of the last 8 months.
It’s safe to say homes sales are lower across the board this year than the last few years. I still believe sales are lower because potential buyers and sellers planning to “buy-up,” have been forced to wait with lower buying power from mortgage rule changes at the beginning of 2017.
There will always be some sellers able to “buy-up” and new buyers entering the market but before sales improve we’ll likely have to see mortgage rules relent, the economy improve and some time pass… it’ll probably take all three to make a difference. However, as it sits, property is currently priced well and interest rates are very low making it a great time to buy if you qualify.