Dale Boddy’s Look at the Red Deer Real Estate Market: November 2006
WHERE DOES A GREAT MARKET GO?!!
After 2005, I wondered, IS THIS AS GOOD AS IT GETS? The answer was and is, NOT AT ALL! 2006 has been fantastic. Red Deer Realtors found and sold more homes for more people than ever before. And we aren’t finished yet.
Perhaps you noticed the quick progression from FOR SALE signs in the ground to posting SOLD banners. Buyers had limited choices and acted quickly. Only 52 homes were on the market on April 30 including just 35 single family homes. Shortages supported ever higher prices. Naturally inventories increased--126 properties listed by July 31 but we needed still more. And up until now, shortages have ruled out market place. Would shortages drive the number of sales down?
NO! More homes sold in 2006 compared to 2005 in each and in every month except two; in May and August sales were down 21 but overall we are up 143 homes. How is this possible? Look at the graph below. Listings were about the same in 2006 as in 2005 but in 2006 everything sold. Compare recent months. It is unmistakable; the market has changed. Suddenly we are awash in product. To illustrate, on October 31 we had 255% more homes on the market than October 2005—276 versus 108. How will this affect prices? Read further!
LIKE THE “ENERGIZER BUNNY,” THE MARKET JUST KEEPS ON GOING!
Prices increased last fall but no one predicted what was coming. January prices surged, 19% more than 2005. February and March prices confirmed price increases were no blip. Run-a-way prices in the summer stunned buyers and sellers--30% higher in May and 41% in August. More and more people wanted homes and our economy and low interest rates turned lookers into buyers. Finally we started getting more product—slowly then more and more. Inventory more than doubled between June 30 (112 listings) to September 30 (234 listings). So what did huge inventories do to recent prices?
Not much! Average single home prices went from $297,544 in June 30 to $329,485 in September and $333,138 in October. Consider two explanations: the ocean liner analogy or market pause? The ocean liner analogy states that real estate prices change like an ocean liner changes speed: hard to speed up and hard to slow down. The market pause theory simply states that from time to time buyers rest, a pause that brings prices stability. I see a pause. Prices are self-correcting, going down slightly but no where near canceling out mid-summer increases. Agree? Disagree? Want more information?
Ask for Dale B: phone 346-6798 @ home, 318-2402 @ cell or 346-0021 @ pager or dale@reddeerproperties.com. Dale (or Joanne) can also be reached at 346-6798 (home). (Copies of these reports are available from Dale or on-line.)
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 Look at Red Deer’s Real Estate Market: November 2007 Dale Boddy’s Look at the Red Deer Real Estate Market: March 07 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. Dale Boddy's Real Estate OUTLOOK: Red Deer 2002.
