The weather is still hot, but the market in Red Deer is cooling off. With Alberta opening back up from COVID restrictions, it’s not surprising to see people taking advantage of their summer and newly restored freedoms to get outside and enjoy themselves. While sales were still strong and the market is still in a nicely balanced position, it’s unusual to see sales in July drop off so quickly from prior months. With that being said, comparing most of 2020 and 2021 to prior years and prior market’s is a difficult thing to do, given current world events.
The single family market under $600,000 remains the strongest point in our market, as has been the case all year, and I fully expect that to continue on. If you’re a buyer, while you still have to be ready to move quickly on good properties, there’s much lower odds of ending up in a multiple offer situation compared to a month ago, and there’s a good chance you may have some room to negotiate on the price. If you look at overall sales in Red Deer of 205 units in June to 155 in July, sales are down 24%, which sounds somewhat alarming and scary. While it’s something to take notice of, I don’t think it’s a cause for panic. When you look at the specific circumstances we’re currently dealing with, and you look at the overall economy, signs point to the market remaining steady and consistent. Jobs are recovering, the economy seems to be improving, the price of oil is good, and we’re starting to hear about labour shortages and companies looking for people. While I wouldn’t hold your breath to see property values shoot up like they have in BC, prices should remain fairly steady.
I expect to see similar results in August, likely with slightly fewer sales, which is normal at this point in the year as many people want to be settled and relocated prior to school starting in September. The fall market typically starts around the 2nd week of September, after the final long weekend of the summer and kids are back in school.
Surrounding community snapshot:
Current Active Listings – 101
Sales in July – 30
Likelihood to Sell – 29.9% (balanced market)
Current Active Listings – 180
Sales in July – 57
Likelihood to Sell – 33.1% (balanced market)
Current Active Listings – 44
Sales in July – 7
Likelihood to Sell – 15.7% (buyer’s market)