Don't Buy Red Deer Real Estate Until You Read This...
Are you still waiting for prices to drop? Stop it! Trying to "time" the market is a terrible idea. It rarely works out that way. Check this out...
The most recent low point for "average" home sale prices was April 2020 $321,104. If you put your memory banks to work, that was peak "COVID-19" closures, where no one knew what the heck was going on and if anyone would work again. Then we've had a steady climb until January 2023 when the average price dipped to $347,922.
A further reflection of interest rates and the belief that "interest rates should push prices down". Yes, they should, because it decreases buying power. However, the defining metric for if prices are strong, sliding or growing is by far "supply & demand". Until there is a shift in the supply & demand equation I wouldn't expect a large annual change in sale prices. Here is the 10-year graph for average house prices.
Despite 2 years of rising interest rates, sales have continued to happen, and the average closing price has gradually risen. Thanks in large part to supply and demand. So what doe that look like...
The solid black lines are the "sales" volume for that price range, and the gold-coloured lines are the listings that came on the market. In a nutshell, the demand for a house in Red Deer is strong.
When we look at all residential property types by community, the supply and demand ratio differs, but the demand for housing has remained strong all year. WIth the most recent interest rate announcement, holding interest rates, we expect that demand for housing in Red Deer and surrounding communities to remain quite positive until there is an economic slowdown for the area and province.
Should You wait to buy a home?
The most important factor is the affordability of monthly living. If you desire homeownership, then your day-to-day finances and rent payments or your current mortgage payments may change with your purchase. Historically Housing prices have risen. Yes, there are moments in time when house prices have fallen, but ever since I've been a home owner, and my parents have been home owners, and their parents etc. prices have gradually risen. Homeownership is a long-term investment. If you plan to live in a house for 20, 30, 40 or 50 years then what are you waiting for?
CENTURY 21 Advantage
#206 - 4807-50th (Gaetz) Ave., Red Deer, AB T4N4A5
Office: (403) 346-0021
Cell: (403) 357-9142
patrick.galesloot@century21.ca
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