May 1, 2016 Market Update
Market Update: April sales in Red Deer were up almost 28% over March, but off 15% compared to April 2015. Year to date sales are also down about 15% compared to the same period last year. And, active listings at the beginning of May were up 21% compared to May 1, 2015, moving the market from balanced at this time last year, to a buyer’s market now.
It’s difficult to pinpoint exactly what impact the move to a buyer’s market has had on prices, but there is no doubt there has been some. Higher priced homes have been affected the most while starter and mid‐priced homes have held their value better, a function of different demand to supply ratios in different price ranges.
When the market softens, buyers naturally want to buy when prices are lowest. If you wait another month, prices may be lower, but maybe they won’t. We only know what the bottom is when prices are already on their way back up.
The absolute best time to buy is in a buyer’s market. It’s also not a bad time to sell, if you are going to buy again in the same market. If you are worried that the house you are selling has gone down in price, take comfort in the fact that the one you are buying has also gone down an equivalent amount. The benefit of buying now is there is much more to choose from!
