Dale Boddy's Look at the Real Estate Market:
Red Deer, January 2005.
2003 WAS GREAT! 2004 WAS EVEN BETTER!!
Phenomenally lucky to be living and working in Red Deer and Alberta is all I can say. Every summary graph below shows better than 2003 and 2003 was a Great, Great Year.
For all but one month, buyers had only about 80% or less of the choices 2003 offered. Sometimes this was because properties sold before they were counted—one month. By year-end, 1639 MLS properties sold in 2004, 22% more than in 2003. Red Deer City building permits also increased overall, a modest 3.3%. Despite an overall increase, fewer permits for single family homes were issued in 2004 than 2003. Building permits in 2002 still reign supreme, about 20% more than 2004. This said, 2004 saw more MLS sales and city permits than ever before, 2669—14% more than 2003 and 7% more than 2002.
The economy’s pace is red hot. Plus, Red Deer’s growing population generates increased demand & sales!
SUPPLY SHRINKS AS DEMAND GROWS! SURPRISE! SURPRISE! PRICES ARE UP!
Compared to 2003, 2004 saw fewer listings on the market long enough to count in my month end inventory. First, listings were about 80% of 2003 levels. Listings were down even more for single family homes. Second, housing demand increased about 22%. Third, if supply is down and demand up, price rises! And this rule rang true.
On average, Red Deer prices increased 8.5% overall and 6.5% for single family homes. With supply shrinking as the year progressed, prices increased as the year progressed. September, October, and December saw prices higher by double digits over one year earlier. Where does this leave us for 2005? Some are predicting a slowing of growth and hence a slowing of demand. Everywhere except in Alberta. Clear as Mud! Early in 2005, demand was down marginally while prices were up marginally.
WHERE are prices and supplies going? Call,
Ask for Dale B: phone 346-6798 @ home, 318-2402 @ cell or 346-0021 @ pager or dale@reddeerproperties.com.
Information supplied by members of the Red Deer and District Real Estate Board. While sources are believed reliable, verify before relying on it.
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 2003. Dale Boddy's Real Estate OUTLOOK: Red Deer 2002.
