Dale Boddy's Look at the Real Estate Market:
Red Deer, January 2003.
Until now, 2001 was the best year ever in Red Deer Real Estate. Not anymore! 2002 RULES! So how good was 2002?
Total MLS sales of 1237 including 863 single family houses were slightly more overall (1.7%) but slightly less for single family houses than 2001. Prices made 2002 outstanding. Average prices increased 6.1% overall and 8.2% for single family homes. Over the full year the average single family home sold for $174,123. But prices went up all year, ending with a December 2002 average price of $180,978. Builders had a great year too! The City of Red Deer issued 1225 building permits for residential housing, 15.3% more than 2001. Selling new houses in our new Isherwood sub-division before starting sewer lines and streets only happens in great years. Total value of MLS sales and building permits moved from $258 million in 2000 to $276 million in 2001 to $325 million in 2002. RED DEER’S GROWTH IS AWESOME!
The supply of housing has everything to do with prices paid. Lots of inventory depresses prices; limited inventory increases prices. Everyone knows this but to be more precise, I’ve counted month-end inventory for a couple of years. In September 2000, inventory dipped to 85% of the year before, and then decreased to about 65% for a couple of months. In January 2001 we had only 70% of the listings of the year before. In our peak spring months, we had about 70% of the listings of a year ago, climbing to 80% and then 90% in late summer. By October, inventory was higher than the year before. Inventory in January 2003 is higher than January 2002 and the same as 2001. So what?
While listings were down, prices increased, and continued to increase even past the shortage. If this trend holds, we are entering a stage of relative price stability. January 2003 sales are down a little from a year ago but are still high. I expect inventory to stay high and prices to hold to 2002 rates.
Higher prices have not brought more homes on the market.
What do you think? Call!
Ask for Dale B: phone 346-6798 @ home, 318-2402 @ cell or 346-0021 @ pager or dale@reddeerproperties.com.
*Members of the Red Deer and District Real Estate Board have supplied the above information. While it is from sources believed reliable, this information should not be relied upon without verification.
Dale Boddy's Real Estate OUTLOOK: Red Deer; Current Edition. Dale Boddy's Real Estate OUTLOOK: Red Deer March 2007. Dale Boddy's Real Estate OUTLOOK: Red Deer November 2006. Dale Boddy's Real Estate OUTLOOK: Red Deer 2007. Dale Boddy's Real Estate OUTLOOK: Red Deer 2006. Dale Boddy's Real Estate OUTLOOK: Red Deer 2005. Dale Boddy's Real Estate OUTLOOK: Red Deer 2004. Dale Boddy's Real Estate OUTLOOK: Red Deer 2003.
