Dale Boddy’s Look at Red Deer’s Real Estate Market: July 2009
IT’S NOT THAT BAD! RIGHT--UNLESS IT AFFECTS YOU!
Sales people are optimistic by nature. It’s always “a good time to buy or sell.” And in June, for the first time in 2009, monthly sales exceeded sales one year earlier. Half way through 2009, it is no secret that market volumes and prices have been affected negatively. These topics are the subject of this overview.
By June 30, 885 properties were sold through the Red Deer mls system. Using January to June 30 sales, totals are slightly more than 2004. Stated another way, 2009 is the slowest of the last 5 years. OUCH! Compared to 2008, the market for all products is off 18.3%. Single-family houses are about the same. At 597 sales, the market is 19.4% lower than 2008. Not surprisingly, listings are down. There are 20-25% fewer sellers than in 2008. What a turn around; 52 listings on April 30, 2006, 735 homes on May 30,2008 and 549 on June 30, 2009. Would-be sellers recognize an over-supply and are staying put.
FROM NEAR DISASTER TO RECOVERY!
Dividing January 2009 sales into January 30’s market inventory shows a supply of 8.23 months. January 2009 was awful--volumes down 42.5% over 2008 and prices down 18.7%. February was better; and so on for every month since. Inventory on June 30 was 2.58 months. NICE! Yes, prices are down but not that much. My best comparison is to consider single-family homes of 1000 to 1200 sq. ft. with a 2-car garage. Here the average price of $301,325 in June is 2.62% less than June 2008. Better yet, prices are stabilizing. Since March, month end averages are all within $1,500 dollars of $300,000. Now that’s close!
Prices are flat but average prices hide a lot of detail. How much is the market really down? Is it 2-3 % relative to June 2008 or 12.5% from May 2007’s peak? And then too, houses selling now are better than what sold in 2007; they are cleaner, better maintained and newer. So how are prices? It depends when you bought and how well your home shows.
So is it a good time to buy or sell? Yes, if you have a reason to move. For people owning a home and moving up, the difference is what counts. This difference may favor you because bigger, newer homes are down more than starter homes. For buyers making their first purchase, prices are down. If you bought last year, you need a really good reason to sell. Sorry!
Thinking about buying or selling? Want more information? E-mail me, dale@reddeerproperties.com or
Ask for Dale B: phone 346-6798 @ home, 318-2402 @ cell or 346-0021 @ pager or . 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 the Red Deer Real Estate Market: November 07 Dale Boddy’s Look at the Red Deer Real Estate Market: March 2007 Dale Boddy's Real Estate OUTLOOK: Red Deer 2008. 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.
