April 30, 2015 – Market Update
Another healthy sales month in April combined with just a slight increase in the number of active listings puts the Red Deer market in a very healthy condition going into our typically busiest time of the year. While sales are off slightly from last year’s hectic pace, they are very normal when considering the last five years. The number of active listings is also normal for this market and provides adequate choices for buyers in all price ranges.
The rest of central Alberta market (except Blackfalds) is also faring well with strong activity in the low to mid-price ranges and stable active listing levels. So far we have experienced very little fallout from low energy prices, although it would be foolish to expect there won’t be some before the year is over. It does appear that most of the layoffs have already happened and many oil companies are in good enough financial shape to keep working even with lower prices.
Oil prices have recovered back to the mid to high $50 range but most experts aren’t predicting prices over $60 until next year. While world demand for oil is increasing, storage supplies are still growing and there are thousands of already drilled wells in the US just waiting for the prices to go up before fracking. There is concern that once prices to up, that supply will very quickly come on the market and drive prices down again.
