MARKET UPDATE – January 1, 2018
Sales in Red Deer in December were down compared to November, but up compared to December 2016. The number of active listings is down but still substantially higher than this time a year ago. The supply of homes relative to the demand in 2017 has kept the market firmly in buyer’s territory and some buyers have taken advantage.
The Alberta economy grew at more than 4% in 2017 which means that we made up some of the ground lost in 2015 and 2016. The economy is predicted to grow again in 2018, but a little slower at about 2%. It’s likely those two years of growth will contribute to a more stable real estate market. No one is predicting a boom, but it is highly possible that prices have hit bottom.
There are signs that interest rates have the potential to increase some more over the next year. Combined with the new mortgage rules, that could make it more challenging for buyers who wait. Predicting the future is a fool’s game. The only way to know the market has turned is to see prices going up, which means you’ve missed the bottom.
We know that owning a home is one of the best investments you can make. For those who are thinking about buying their first home or moving up, the signs suggest that now might be the opportune time to act on those thoughts.
