Balanced Market Coming Soon?

January resulted in some positive sales trends for the Red Deer residential MLS®.  The summary of all the changes is essentially an increase in sales and a decrease in new listings processed by the the Central Alberta REALTORS® Association (CARA).

Are we headed towards a balanced real estate market in Red Deer?

First a balanced market is characterized by the volume of new listings coming on and the sales each month.  Balanced is typically considered when the number of sales to new listings is 55% – 75%.  Anything below 50% being a “buyers market” and anything higher than 75 or 80% is a “sellers market.  I’m sure we could debate whether the cut offs are higher or lower but you get the idea.

I short look at January 1 to roughly 5:00 today February 8th reveals the following numbers.

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January 1st – Feb 8th: New Listings Sales Sale/Listings

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2011 286 125 43.71%

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2010 365 127 34.79%

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2009 360 92 25.56%

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2008 404 168 41.58%

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2007 269 261 97.03%

While we are not quite at 50% for a sale to listing ratio yet, the trend indicates we are heading that way.

Sales to Listing ratio January 1 to February 8th

So what does this mean?

If your selling your home today market conditions are changing more in your favour.  Not an overnight bidding war change, but a move towards stronger prices.  The worst is behind us in my opinion.

If your buying today, you need to be mindful of the bottom of the market.  The bottom that everyone has been looking for appears to have passed and we are trending upwards.  Not a rapid rise, so far.

Patrick on Red Deer real estate

Patrick Galesloot

Century 21 Advantage

Broker/Owner

@pgalesloot on Twitter

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