Dale Boddy's Look at the 2005 Real Estate Market:
Red Deer, January 2006.
IN '05 the VIEW IS GREAT from the TOP OF THE WORLD!!
It doesn’t get much better with each year better than the year before. Let’s look at prices, sales volume, and inventory before examining where we go from here.
Overall, average prices are up 9.7% over 2004. For detached or single family homes, average prices are up 12.7%. Buyers of new homes are finding similar if not greater increases. Tracking averages over 10 years, prices increase 5.6% per year with one decrease (-1% in 1996).
Sales are up around 10% for MLS listings and 5% plus for new construction permits. The grand total for MLS sales and new permits issued shows an increase of 9.2% over 2004.
Inventory is an issue. At any given time, inventory was down. For my month-end MLS count, listings varied—from 80% of 2004 listings in the dead of winter, to 70% in June & July, to 50% in November and December. Properties come on the market & sold before my month end count. In 200, 2071 properties were listed with 88% selling. Impressive!
IS THIS AS GOOD AS IT GETS? NOT VERY LIKELY!
Economists are asking the same question and not everyone is on the same page. Bank economists vary from cautiously optimistic to mildly pessimistic. Our dollar may be up or it may be down. Wages are up! So are interest rates! Farm incomes are up! And jobs are still being created. Ever conservative, the provincial government is spending money. And for good reason! Alberta is in the midst of a building boom, an employment boom, a consumption boom. This optimism is shared by Canada’s housing specialists, Canadian Mortgage and Housing Corporation—CMHC.
CMHC reports that 72% of Albertans own their own home versus other Canadians who average 64% home ownership. Albertans choose bigger lots over proximity to work. And 55% of Albertans who rent, plan to buy in 5 years whereas only 42% of other Canadians renters plan to buy in 5 years. CMHC sees our red hot economy and a home-hungry population as supporting continued market strengths in 2006.
WHERE are prices and supplies going? Call, Agree? Disagree? Want more information?
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 2004. Dale Boddy's Real Estate OUTLOOK: Red Deer 2003. Dale Boddy's Real Estate OUTLOOK: Red Deer 2002.
