This morning we had the pleasure of presenting to the Red Deer Social Media Breakfast. This was the 57th event for this local networking and learning group. As a sponsor, we were delighted to share a brief update on the MLS® real estate market in Red Deer, AB for 2017.
The slideshow is available to view on SlideShare.net for those in attendance that didn't get a view or wanted to look at the numbers in detail. It is also now available for everyone. Any questions on the content please feel free to ask. Please note the data is taken from the Central Alberta REALTORS® Association MLS® and the numbers are a combined values for all property types using sale data from 2017.
Starting with a comparison of average house prices. We're fortunate to have some historical data from our long history of serving Red Deer. This adds some perspective and comparison to a period in our history where Red Deer benefited from growth due to robust Oil & Gas economy. Following the changes implemented with the National Energy Program, and soaring inflation. Interest rates hit 21% in 1981, and the local real estate market values peaked at an average sale price of $74,411. A significant increase at the time from 1974 values that averaged $33,815.
35 years later Red Deer is recovering from Oil and Gas downturns, new energy policies (Carbon Tax), new environmental initiatives and concerns etc. all of which have impacted our local economy and real estate. The average sale price for all property types in 2017 was $330,504. (Yes I also wish my parents bought a ton of real estate in 1974, and had it to sell today). We also included a look at current price per square foot values to see what trends are unfolding there. (Again these values are a combined number of all property types regardless of age etc.)
Reflecting back 30 years to 1987, we see sales volume that had the highest concentration in the $70-79,000 price range and $80-89,000 respectively. Back in those days we grouped properties in $10,000 price segments, started measuring sales volume at $40,000 and up, and anything over $110,000 was grouped into one high-end category.
Reflecting on the year 2017, last year our MLS® real estate sales resulted in the bulk of the sales volume falling within $300-350,000 and the next largest group being $250-$300,000 (These numbers are for Red Deer Residential MLS® Sales Volume only see chart). Today we now group sales under $100,000 in one category and cap or group high-end listings in the $700,000+ group for tracking purposes. We see enough variance in the high end to warrant stretching that out more specifically however for visual reference our sheets are condensed in this format.
If you have questions about the real estate market and how your home is impacted, please let us know.