Dale Boddy’s Look at the 2010 Red Deer Real Estate Market
January 2011.
2010 saw the continuation of a buyer’s market, namely, supply exceeded demand. Sales volumes look like 2003-2004 and prices look like 2004-2005. Rather than being at the exhilarating peak or the depth of a valley, 2010 is “normal” in the typical real estate cycle. Let’s look at “normal in terms of supply and demand.In Red Deer, 2010 Multiple Listing Service (MLS) listings totaled 3314. This is 5% more than 2009, less than 2007 and 2008, and more than 2006 and earlier. In the last 4 years listings totaled in the 3000s. In 2006 and earlier listings totaled in the 2000s. Sales peaked in 2007 with 2241 sales. Sales totaled 1385 in 2010, declines of 40% from the peak and 19% from 2009. More listings and fewer sales resulted in over half of the listings failed—did not sell. It should mean lower prices but didn’t. Average prices of single family homes increased to $345,570, 3% more than 2009. This average price is within 3% of the peak average. Results confirm that property continues as a good, stable investment. There is, however, more to this story.
Averages gently trends upwards but a closer look provides rich detail. In the boom, any house sold. Now houses must be well maintained and show well to sell. Surprisingly, the luxury home market is reasonably strong. When a few million dollar homes sell, the “average” is bumped up. While prices averaged up, so did the average year of construction. Houses sold in 2010 were on average 1.5 years newer than they were in 2009. It’s not just a new year that pulled up the average, the total pool of sales were newer. Houses sold in 2010 were newer. Both these factors, luxury home sales and newer houses pulled up the average. In addition, the range of median prices, the middle price in each month’s sale, crept up, not significantly (less than $5,000) but unmistakably up. In conclusion, I think prices in 2009 and 2010 are about the same.
The real estate market has seen better days but overall our market is also strong and stable. The value of properties sold in 2010 is the 4th highest ever. Average prices were the 3rd highest ever. Sales volumes exceed those of 2003, making 2010 our 7th highest ever. 2011 shows evidence of holding its own. If oil is the driving force in Red Deer, however, then sales and prices will be stronger in 2011.
Want more information?
Ask for Dale BODDY phone 3403-318-2402 (cell) or 403-346-0021 (pager) or dale@reddeerproperties.com. 2011/02/01 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 2008. 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 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.
