August 15 2014 – Market Update
Red Deer Market Update – sales in Red Deer in the first half of August were off slightly from the same period in July and the number of active listings also dropped. The number of pending sales (those with accepted offers with conditions) has dropped by almost half which is an indication that the market has slowed a little. That will likely be confirmed with lower end of the month numbers.
Activity is still strong in the $300,000 – $350,000 price range where thankfully there still seems to be ample inventory to satisfy most buyer’s needs. Higher end activity is also very strong this month compared to previous months.
The overall central Alberta market is still quite strong with year to date sales up from last year. New construction appears to be keeping pace with population growth in most places and is keeping price growth stable. Our research shows that prices have now recovered from the economic downturn in 2008 except at the high end of the price spectrum. A couple of the reasons for our continuing strong housing market are outlined below:
Alberta’s unemployment rate globally impressive – Nick Ford, Economist, ATB Financial – Alberta is the envy of Canada, at least when it comes to finances. Our economy leads the nation, particularly in job creation and a low unemployment rate. Alberta’s unemployment rate currently sits at 4.9 per cent, holding second place behind Saskatchewan’s 3.9 per cent.
Alberta’s employment environment fairs well not only on the domestic front, but also on the global stage. Using data from StatisticsCanada, it sits in sixth place when compared to the 34 countries in the Organization for Economic Co-operation and Development (OECD). Canada places seventeenth (7.1 per cent unemployment) while the United States just misses the top ten by landing eleventh with a current unemployment rate of 6.1 per cent (according to the US Bureau of Labour Statistics).
However, since the latest available OECD data is from October 2013, the unemployment rate for October 2013 can be used to level the playing field. When this is done, Alberta jumps up one spot to fifth place (4.5 per cent unemployment). Canada also slides up one spot to sixteenth (7.0 per cent unemployment). The U.S., with a higher unemployment rate (7.2%), slides back eight spots to number 19.
Here at home, Alberta’s job market remains the strongest in Canada. Continued growth in the province’s economy in 2014 will maintain a balanced job market and a low, healthy unemployment rate. ATB Financial predicts the unemployment rate will average at 4.5 per cent this year.
Manufacturing on a tear in June – Todd Hirsch, Chief Economist, ATB Financial – The value of manufacturing shipments in Alberta reached a new record high in June at just under $7 billion, adjusted for seasonality. According to the latest numbers from Statistics Canada, manufacturing racked up $6.925 billion in sales in June, a big jump (+4.7 per cent) from the previous month.
