July 5 2015 – Market Update
Another strong sales month in May, up from April but down from May of last year. The Red Deer market continues to favour
sellers as a result of the number of active listings actually falling compared to last month. A lower listing count is a bit of a
surprise as is the strength in the local market considering the current economic situation. The reason may be that builder’s
spec inventory has been absorbed while fewer building starts is keeping inventories lower.
In most of the central Alberta communities we serve, the market is slower this year compared to last. However, comparisons
between the 2014 and 2015 markets can be a little misleading. The 2014 market was the busiest since 2007. In fact, the
active listing and sales counts this year are quite normal when compared with 2012 and 2013. We don’t want to minimize the
impact that lower oil prices have had on the economy, but so far we aren’t seeing it in a large way in the housing market.
Since dropping to about $45/barrel, oil prices have recovered to the $60 range. The consensus among the experts seems to
be more of the same for the rest of the year with a slight improvement in 2016. The one thing that isn’t clear is how that will
impact our economy and the housing market. It certainly won’t be as bad as it would be with $45 oil, but it would be foolish
to assume that it will be as good as it was last year. We are looking forward to a stable market for the rest of the year.
