Is the Sky Falling In Alberta??

Alberta is the talk of all my friends and relatives from out of province. After escaping to the Okanagan for a family holiday, I heard over and over "How's the market?" or "Market is declining now?”

So what is going on here in Red Deer?

Lots!

The biggest recommendation I can make to clients is to be informed and have realistic expectations regarding time on market and price. Long gone is the day where the price was the starting price, and increases in value were measured as an hourly rate. However, conditions are ripe for buying and selling in Red Deer and area.

So far this month in Red Deer, there has been 159 properties sold this month with an average sale price of $314,346, and an average days on market of 36 days. Compared to the same time frame in August 2006 we are selling more properties. That’s correct more!

From August 1 – 27^th, the date at which I am researching this data, in 2006 there were 145 reported sales, an average price of $250,490 and days on market of 23.

Don’t let the rumor mill sway you from buying today. In fact the time is fantastic for buyers. The interest rates are still low at 5.74% for 5 year rates with anticipated rate increases having been put on hold. The financial reports from the province state that we have a surplus. Not just a little one either, this despite large increases in spending by the province.

On a local level, Penhold is the little town that can. Penhold has been lagging behind in growth in comparison to Blackfalds, and Sylvan Lake, but 2007 is Penhold’s year. The Red Deer Advocate recently reported that there is a “Penhold building boom”. They are currently experiencing a 260% increase in building permits from 2006. Penhold is not standing still at that either with plans to annex more land, and aggressively pursue major infrastructure for schools and recreation as well as commercial and industrial.

The biggest benefit to buyers today from 2006 is selection. The market is definitely more competitive with more offerings for buyers in every price category. Buyers can breathe, and make a decision this year. A welcome change from last years bidding frenzy.

Those conditions were exciting for sellers no doubt, but this year it is equally as exciting. Today sellers have the luxury of trading up or downsizing without hesitation or fear of homelessness. Many residents in 2006 were skeptical of selling as it was indeed hard to find a home. In 2007 we are seeing more and more home owners moving up with confidence.

Other notable indicators of a healthy economy, as reported from the provinces economy update:

• New motor vehicle sales in Alberta rose by 3.4% in June
• Alberta’s shipments still rose by 3.8% in the first half of the year, mainly due to increases in petroleum and coal and chemical products.
• Nymex Natural Gas C$/MMBtu * September Contract August 17, 2007 $7.55, up from August 10, 2007 $7.09

It’s a great time to live in Alberta and call it home. If you have any comments or questions feel free to send them my way.

Move with confidence call us at Century 21 Advantage today.

Your Friend in Real Estate,

Patrick Galesloot