December 5 2014 – Market Update
In Red Deer November sales dropped 30% from October’s and it appears that the winter market has finally appeared along with the winter weather. While the number of active listings fell again the month, it wasn’t enough to offset the drop in sales pushing the market into balance for the first time since early this year. There’s no need to panic though, this situation is typical for this time of year.
At this time of year we are often asked for a forecast for the new year. Of course our crystal ball is no better than anyone else’s, but there are a number of things to consider. The one cloud in our otherwise sunny skies is the specter of low oil prices. Lower oil prices could certainly have a negative impact on our economy and the housing market if they persist. Most experts don’t believe that will happen.
Alberta economy has led the country for several years and most likely will continue to do so. We have the lowest taxes and the highest wages in Canada and people from other parts of the country will be attracted to that. Strong population growth and high wages usually are reliable predictors of a strong real estate market. We continue to believe central Alberta is the best place in the world to live, even if it can be a little cold some days.
