Market Update to Oct. 14/10 Red Deer
Price Range	All Active	Pending	Active 1 Year Ago	Sold MTD Oct. 7/10	Sold MTD Oct. 14/10	Sold MTD Oct. 14/09
< 100	29	0	22	1	1	0
100 – 150	43	0	27	0	0	1
150 – 200	64	2	56	0	1	8
200 – 250	100	5	93	2	6	17
250 – 300	137	7	104	1	12	9
300 – 325	55	1	46	2	4	7
325 – 350	60	2	53	2	3	7
350 – 375	41	0	29	4	4	2
375 – 400	45	1	39	3	3	6
400 – 450	47	0	38	1	2	6
450 – 500	41	2	30	0	1	0
500+	69	1	61	0	1	3
Total	731	21	598	16	38	66
Avg. Price	$327,140.		$331,032.	$290,318.	$304,536.	$297,740.
Days On Market	61		49	56	56	47

Good News for Alberta Housing Markets – Last week we heard that oil and gas lease sales in Alberta have hit an all time record in 2010 with 5 more land auctions still to come.  That means that oil and gas exploration will follow, maybe not this year, but soon.  It also means an inflow of cash into our provincial government coffers.

 

New oil and gas exploration means new jobs.  New jobs mean population growth.  Population growth means demand for houses.

 

Demand for houses means economic growth and prosperity since the construction industry is one of the engines that drives our economy.

 

Our housing markets in central Alberta have just experienced a slow summer, which was to be expected since the local economy has been slow and we have not experienced much job creation or population growth in the past year.

 

Recent news indicates that net in-migration to Alberta from other provinces increased substantially in the second quarter of 2010 after negative growth in the three previous quarters.  The numbers are not nearly what they were in the boom years, but are a huge improvement.

 

Alberta has always led the rest of the country out of a slow time.  The demand for our exports in the US is still not what it could be, but recent news suggests they are looking at our oil sands as a safe source of energy.  Economic growth in south-east Asia and China is still relatively strong and there will be new demand for our commodities from there.

 

We own the second largest proven reserves of oil in the world.   We know that even in a slow economy the world is consuming vast amounts of oil and gas and eventually the demand will outstrip existing reserves.  Ft. McMurray and the oil sands seem a long way removed from central Alberta, but things are booming up there as companies rush to develop more production capacity.

 

While low natural gas prices have held back much of our energy industry, there are some who are predicting higher prices next year.  That theory would be supported by the sale of those leases previously mentioned.  As an added bonus, a small increase in natural gas prices will have an immediate effect on government revenues which eventually flow into our economy.

 

Alberta is the land of milk and honey.  We have the lowest taxes, the least amount of debt, the largest oil reserves and the most opportunity!  It is the best place in the world to live and work and I am thankful to be here.

Tags: Red Deer real estate market update