January 1, 2016- Market Update
Market Update- Red Deer sales were lower again in December, finally pulling the market into Buyer’s territory after many months when Seller’s had the advantage. The total number of active listing is back down to levels we saw last February and March. Total sales for the year are down 16.7% from 2014 but on par with or better than 2009, 2010, 2011, 2012, and only slightly lower than 2013. All that translates into a pretty normal year when considering the long term.
So, while things look a little grim based on the last quarter, the real estate market in 2015 was more robust than the media would have you believe. The truth is, Alberta’s population still grew in 2015 and there were still jobs created here. They weren’t the high paying jobs the energy industry used to generate, but certainly eased the pain a little. In the meantime, other Alberta industries benefitted from the low Canadian dollar and low energy costs. Transportation companies, airlines, logging, tourism and the public in general were all beneficiaries of low energy costs.
Unlike 2008, the rest of the world economy is moving along fairly well. There is no doubt that there will be some pain in Alberta from our current situation, but it would be foolish to assume that the sky is falling. As always, we will survive and come our stronger and better equipped to manage the next one.
