If you missed our economic update event, we brought in ATB Financial's chief economist and he stated that we are in recovery mode. We have emerged from the recession and slowly climbing, overall Alberta economy wise. So that is a positive indicator that the worst is behind us. Anecdotally the mood, the feel, the vibe in Red Deer and surrounding area is more positive and we the people on the street tend to echo that sentiment. Things are looking up.
Real Estate market, March marked the fourth consecutive month of year over year sales growth. More people are buying than last year. Another positive indicator. In fact for the City of Red Deer, MLS® residential home sales YTD are 16% higher than last year. If you were waiting for the bottom of the market, it's looking like you may have missed it.
Throughout the first quarter of 2018, the sales by property type continue to favour single-family homes. In other words, a house sales are more abundant than other property types.
No change, really. The price of a house remains affordable and is the preferred property type of most home buyers.
If you're selling a higher priced home, such as $750,000 or higher, the market results may not seem as rosy. The number of sales, or buyers, are less the higher priced homes are.
With the most active price range being $250,000-$300,000 followed by $300,000-$350,000 it's easy to see why the average price of all real estate purchases falls around $310,000. Meanwhile, the average sale price for a single-family detached home (house) YTD for 2018 is reported at $366,868.
Sellers can be encouraged by the increase in sales volume, as it is a sign more buyers are willing to purchase real estate. However, special attention shoul dbe made to remaining competitive with price, and the overall value presented in their home. The supply, inventory, levels of real estate in Red Deer remain high. It is still a buyers market.
The other factor sellers should be mindful of is the time on the market. The sales process takes longer than many people think. With days on market varying by property type, location and price. This is what days on market and the respective sales volume by property type look like.
It's easy to see how different expectations on time can vary.
If you have additional questions about the real estate market, we'd love to hear from you. It's important to discuss how YOUR home fits into the market and what the normal or average is for properties like yours today.