August 31, 2016 – Market Update
August sales in Red Deer kept pace with July’s and, for the first time this year, were higher than the same month last year. The number of active listings was down just a little and the market manage to stay just inside the balanced territory. All in all, a very positive result in a difficult economy. The strength in the Red Deer market continues to be in the $300-000 – $450,000 price range where supply and demand are in balance.
When the economy slows as it has over the past two years, the housing market is surely going to slow as well. Sellers have to adjust their expectations when there are fewer buyers and more competition. Recent sale results provide proof that there are still buyers for competitively priced homes. Very low interest rates are contributing to better than expect market activity.
In spite of some continuing economic gloom, news of falling supply and increasing demand for oil in the world market provides home that prices will get past the magic US$50 mark for good in the coming months. Energy companies have become streamlined and more cost efficient and will be able to generate profits at that price and put some of our unemployed workers back on the job. Ultimately that is what will help get the Alberta economy back on track.
