April 5, 2015 – Market Update
The Red Deer Market continued to defy logic again in March with sales that almost matched last year’s. At the end of the month there was still a large number of sales pending and strong viewing activity that suggests we could have a very good April as well. The one slight concern is the growing number of active listings which is well above where we were last year at this time. High inventory levels are good news for buyers and will keep prices in check this spring.
The ATB Alberta Economic Outlook just released suggests that while oil and natural gas prices are down, there are lots of bright lights in the Alberta economy. Forestry, agriculture and tourism are all going to benefit tremendously from the low dollar, lower energy costs and better labour market. The construction industry will also benefit from those things and will be kept busy to some degree as the provincial government pushes ahead with public works projects, schools and hospitals.
The real estate and residential construction industries will undoubtedly feel the impact of lower oil prices, but will not be impacted as heavily as previous downturns. Net immigration to Alberta is expected to reach 40,000 people in 2015 and those people will need homes. Historically low mortgage rates under 3% combined with stable prices will make home ownership a very attractive proposition for anyone needing a place to live in Alberta in 2015.
