Red Deer Real Estate Blog

Welcome to Summer!

Officially we marked the summer solstice(equinox) 2009 this past weekend.  It is to early to say whether or not the peak of sales activity also aligns with the longest day of the year, historically the two are close.  The kids in school are no in their last week, and Canada is one week away.  July and August tend to be full of family vacations, and enjoying the short Canadian Summer. If you’re selling you should be having consultations with your Sales Associate on market conditions and what they should expect this summer.

Last week was a high point for 2009:

Week ending June 21st and the sales to new listing ratio climbs to a new high point for 2009 at 85.48%!  Sales ratios at this level typically reflect a “sellers” market.  To declare we are in that state is very premature.  We do have a decrease in Listing inventory for the City of Red Deer, but we still have a a competitive selling environment.  Some price points may appear to be reacting as a seller’s market while others are clearly in a buyers market profile.  These profiles are not only limited to price point but areas and sub areas.  Now is a very dynamic time to be on the market selling.  Be sure to talk to a knowledgeable Local Expert on the nuances of your area.

Those of you following my weekly real estate stats will notice that reported sales were in fact higher a few weeks ago and have been performing well week in and week out for some time now.

If you are buying today you should take special not of the gap between the red line and the blue.  The narrower this becomes the more listings are not remaining on the market.  It means that their are less homes available each week than previously.  Combine that with the rise of interest rates and it appears it would be a wise choice to act swiftly to capture the lowest possible interest rate and the selection still available.

Mid May looks like the high point for “pending sales” so far.  Largely due to the threat of rising interest rates.  Rates were climbing from 3.69% to 3.89%.  Today the latest rate sheets indicate the best 5 year closed rates are now 4.29%.

Your Friend in Real Estate,

Patrick Galesloot

Patrick on Twitter:  @pgalesloot

Century 21 Advantage on Twitter:  @C21Advantage 

Father’s day weekend with Red Deer Kinsmen club means it is time for the Kinsmen Camp Out.

Every year the Red Deer Kinsmen get together for a camping weekend.  The Red Deer Kinsmen is a social club made up of young men who raise money for the communities greatest needs.  The largest and main fundraiser we do as a club id the Dream Home Lottery.  The Dream Home campaign has grown to be a mini business where the club raises over $1,000,000 in ticket sales in 2 months.  Fortunately we are not all about business we’re about having fun as well.

Father’s day weekend the club hosts their annual Kin Camp Out, which is a weekend of camping with fellow Kinsmen, Kinettes (just Kin ladies), and K 40′s (Kin alumni, typically 40+). 

This weekends camping destination is a West Central Alberta destination called Em Te Town.

A western town theme, complete with a bank, jail, and saloon.  the town is closed to cars traffic, visitors are only allowed to walk through.  The camping facilities include RV camp sites, TiPis, Cabins, and a Motel.

The area was very green and the drive was easy and relatively quiet.  Close to two hours from Red Deer, and minutes from Alder Flats, AB  Looking for a weekend getaway with local flair?  Visit Em Te Town, fun for the whole family.

Your Friend in Real Estate,

Patrick Galesloot

Follow me on Twitter:  @pgalesloot

Latest headlines are still about Chrysler and GM, still talking about the deficit spending and the “bad” economy, still talking about politics etc…  Now let’s talk real estate.

Sales for May 2009 increased from April, and overall it was a busy month.  There was a total of 197 MLS® sales in the city of Red Deer for May 2009.  This was up from the 178 reported in April, an increase of close to 10% in one month.  It did not start out that way.  The real estate sales in Red Deer can be influenced by the weather.  You may recall that we started cool and wet and were greeted with snow to end the long weekend, with that cold wet weather was a softer sales performance.  Snow in May is not all that new right so can we look at inclement weather as factor influencing performance?  Perhaps we can, as temperatures heated up so did buying activity with weekly sales increasing from the long weekend.

2009 weekly Sales and Listings Comparison:

Week to week the sales are increasing and the listing inventory starting to slow down.  Many people we talk to ask us about the market, and “how bad is it?  We see more for sale signs”.  “For Sale” signs are a sure sign of spring.  Each year when the snow melts ”For Sale” signs pop up just about as fast and prevalent as dandelions.  Why is that?  Mostly because we don’t like to be moving in -40C snow bound conditions.

“So how is the market compared to previous.  We’re not as good right?”

That is another common statement and question we hear lately.  “Not as good compared to what?”, I think is the answer.  The best check up or comparison is to look at previous years and previous months.  May MLS® sales in the city of Red Deer total 197.

As noted above, MLS® real estate sales in Red Deer have had strong positive growth since the start of 2009.

Sales continue to center around $300,000 with increases in sales occurring in higher price ranges.  The average sale price increased to $309,492 for May from in April.  As more people are able to move up the average climbs.  This is a healthy indicator of the market.  Keep in mind that finding that average home is virtually impossible, and that not all price ranges are experiencing the same level of sales growth.  Higher end homes are slowly starting to sell.  The bulk of the activity as indicated by our graph is $275 – $350,000.

How does May 2009 stack up?

May MLS® sales for the City of Red Deer was the third highest on record and the sales to new listing climbed to 60% moving us more into a “balanced market” from a “buyers market”. 

If you are selling today it doesn’t mean that things are all roses, it does hold optimism.  With listing inventory in Red Deer at 640 units it is still quite competitive.  Sellers need to be grounded in their expectations if they want to sell this summer, and be fully aware that they face some stiff competition and should price and showcase their home well in order to garner a buyers attention.

Buyers today still have the luxury of selection and low, low, low interest rates.  However, do not be surprised if you find the right home and are forced into a bidding war.  Well priced homes attract multiple buyers.  If the value is there buyers today must have their finances in order and be prepared to act swiftly.  This is particularly more common around that middle price range.

Your Friend In Real Estate,

Patrick Galesloot,

Century 21 Advantage.

Follow me on Twitter  :  @pgalesloot 

All stats from the Central Alberta REALTORS® Association MLS®