January 2023 brings more change into the Red Deer real estate market.
Sales this year have been lagging in comparison to the sales volume we experienced in 2022, and 2021. Definitely influenced by the mortgage rate changes of the past several months. The changes in affordability and budget levels established by mortgage rates have added some uncertainty as buyers adjust.
If you've owned a home for 15 years, or more then you've probably experienced today's 5% interest rate level and felt confident that 5% was a "good" rate. Today it is a game changer for many. Increasing from 2% to 5% has put some plans on hold and established lower purchasing power.
However, January was not ALL bad. It was actually quite strong. To add a little context, January 2022, and 2021 were well above average bench setting high marks for sales volume in January. The 10-year average for Residential Sales Volume is presently 86. So 2023, was "above average".
January is not necessarily reflective of how the rest of the year will unfold. It does tell us what the market is shaping up to look like now though. A 26% decrease in sales volume does make one pause and ponder about what the year will look like.
Sales and listing volume were considerably low at the end of 2022. The listing inventory count declined in November and December, however, bounced back to a certain extent in January. The supply and demand equation is shifting. It is important to have a close look at the pricing and volume for homes like yours, in an area where you live, otherwise, you run the risk of being "for sale" for extended periods of time.