Market Update to Dec. 31/10 Red Deer
Price Range	All Active	Pending	Active 1 Year Ago	Sold MTD Dec. 23/10	Sold MTD Dec. 31/10	Sold MTD Dec. 31/09
< 100	18	1	18	5	6	4
100 – 150	32	1	28	7	8	2
150 – 200	54	2	40	11	11	5
200 – 250	66	3	66	14	14	14
250 – 300	87	8	82	25	26	17
300 – 325	36	4	43	10	12	11
325 – 350	28	0	35	5	7	8
350 – 375	25	1	23	4	4	6
375 – 400	33	1	33	2	2	7
400 – 450	35	2	27	6	6	7
450 – 500	22	1	20	2	2	1
500+	47	2	44	1	1	3
Total	483	26	459	92	99	85
Avg. Price	$321,824.		$320,979.	$270,130.	$268,818.	$298,512.
Days On Market	69		59	60	62	50

Market Update – We hear lots of words these days describing the local economy… slow and steady, modest, gradual, flat line, weakness, fall short, stronger, picking up …. etc. etc. 

When I look around me, things appear pretty normal in central Alberta.  Stores are busy, restaurants are busy and the streets and highways are full of traffic. 

One of the measures of a healthy economy is strong consumer confidence.  Imagine, if the average guy on the street has confidence, it can make a difference in the economy. 

We need to be careful not to over-analyze things too much sometimes.  Sometimes we need to forget all the negative stuff we hear from the media and just act like things are normal. 

Modest GDP Growth Kicks Off Q4 by Todd Hirsch, Senior Economist, ATB Financial 

It may have dipped into negative territory during the final month of the third quarter, but Canada’s GDP kicked off the fourth quarter with a month of positive, albeit modest, growth. 

In October, the national economy expanded by 0.2% (month-over-month, and adjusted for seasonality). 

Oil and gas extraction expanded by 1.3%, almost entirely on the strength of natural gas. Support activities for mining and oil and gas extraction rebounded (+9.9%) from its September decline. 

That pace of activity bodes well for Alberta. While monthly GDP figures are not reported for the provincial economies, Alberta is the dominant region for Canada’s oil and gas sector, and related support activities. The strong energy sector related activity— prompted by stronger oil prices— suggests that Alberta’s economy is picking up momentum. 

Other Canadian sectors to post gains were real estate, the public sector, wholesale trade and transportation. Contractions were seen in manufacturing, construction, utilities, retail trade, and finance and insurance. 

While the 0.2% expansion of the Canadian economy does represent a return to positive territory, it did fall a bit short of economists’ expectations (+0.3%). The underlying weakness in the US economy, which greatly affects Canadian exports, as well as the high Canadian dollar continue to weigh heavily on growth. Excluding natural resources, the economy has flat-lined. 

This morning’s GDP report is unlikely to prompt the Bank of Canada to raise rates at its next Fixed Announcement Date (January 18, 2011). If anything, it could encourage the central bank to hold off on rate increases until much later next year.

Tags: Red Deer real estate market update