To sum up the January market really quickly for you, the market for detached homes under $600,000 is on fire! But that’s it, that’s the only one. The high end market is still quiet, and the condo market is still quiet. The busier segments of the market are balancing out the slower ones however, as Red Deer and most Central Alberta communities are sitting with balanced markets currently, something we haven’t seen since 2015!
First time buyers were the main proponent of the increase in sales last year, and that still continues to be the trend. Record low interest rates are a big factor, and low prices are also still at play despite the increase in demand. With some rates as low as 1.5% right now, there’s no incentive to rent if you qualify to buy. Rental demand is still strong though, as many people no longer qualify for a mortgage thanks to tighter lending rules. With regard to prices, we’re sitting 10-15% below where we were in 2014 on average, which on a $400,000 home equates to $40,000 – $60,000 difference. Your dollar goes a lot further in 2021 than it did in 2014. Alberta real estate in general is still extremely affordable compared to many markets across the country, specifically BC and Ontario.
Demand for acreages also seems to be increasing. The inability to travel has many people searching for home based retreats and more space, and understandably so. Affordability is still a factor for most people, so the higher end acreage market will like still remain quieter, while the market for acreages under $600,000 is going to be very hot this year.
Listing inventory is very low right now, down 13% from the same time last year. There are a number of factors that we can attribute to this, not wanting to show during COVID, nothing to buy, inability to re-qualify for a mortgage, etc. If you have a property you’ve been thinking about selling, now is a good time to do it as there’s not much competition.
Surrounding community snapshot:
Current Active Listings – 62
Sales in January – 18
Likelihood to Sell – 29% (balanced market)
Current Active Listings – 117
Sales in January – 29
Likelihood to Sell – 25% (balanced market)
Current Active Listings – 27
Sales in January – 6
Likelihood to Sell – 22% (balanced market)
If there’s any stats or info missing from this email that you’d like to see added in, please don’t hesitate to send me a message and let me know. Please feel free to share this information with your friends, family, and co-workers. If there’s anything else we can do to assist you or somebody you know, we’d love to help.