Dale Boddy's Look Real Estate Outlook:
Red Deer, January 2008.
RECORD SETTING 2007 . . . BUT!!
MLS prices increased 23% overall with average prices of $307,408 and for single family homes, $355,142 . The volume of MLS sales and Building Permits grew to 818 million, 21% more than 2006. More houses sold on MLS than ever before, 2241 homes, 9.7% increase. Building permits, however, declined 23% to 1062 permits. After years of rising values and volumes, the decline in building permits is significant!
2007 was a great year but issues were emerging. Building permits declined and it wasn’t just because of a shortage of workers in the building trades. By year end, builders were selling homes for less. MLS sale prices also declined. Using averages, prices peaked in June and declined 8.7% by years end. Sales volumes also fell.ATypically, winter usually brings fewer buyers and sellers. By the year-end of 2007, normal sales patterns re-emerged.
In 2008, consumers see bad economic news; hear optimistic forecasts; all while enjoying positive life experiences. In January the stock market stumbled, recovered, plunged and recovered--somewhat. US housing slumped badly, and recession feared. In Canada, oil prices have fallen. (Are the prices back to 2006 levels?) Our discounted dollar, by getting better, is killing manufacturing jobs and reducing profits on sales of oil and gas. And who knows what the impact of royalty increases and environmental concerns will be?
But wait. Our politicians are telling us, that we are in good economic shape. And we already got a tax cut. The Bank of Canada is concerned and did lower interest rates. Canadian economists are predicting a good year: Sure, a downturn in America will affect us but it will slow rather than stop growth. Realtors predict slower sales but still the second busiest year on record and price increases, modest. In summary, the economic outlook for Canada is good and Alberta’s outlook is even better.
Here in Red Deer, people are working and spending. Jobs are good and plentiful. And buying and selling homes is occurring every day. Sure, people are cautious but basically optimistic. Optimism is contagious.
Want more information? Call
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 2010. Dale Boddy's Real Estate OUTLOOK: Red Deer 2008. 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.
