Brighter future for home sales predicted, officials say

Local real estate officials are confident of brighter days ahead in the Central Alberta housing market.

Patrick Galesloot, president of the Central Alberta Realtors Association, said he’s noticed heightened optimism amongst buyers, sellers and realtors in the past while.

“It’s going to be a stronger year.”

Less inventory and increased demand for homes also points to a stronger market in 2011, he said. Galesloot predicts growth of 3 to 4% in sales this year.

“I am confident the worst is behind us as far as the decline in sale prices, and I believe there is increasing confidence in the real estate sector by buyers and sellers,” he said, adding that 2010 sales volumes were much lower than expected.

Total MLS residential sales for 2010 was 22.55% lower than in 2009 when 3,684 residential properties were sold via MLS.

“It’s no secret that in 2010 it was difficult to sell your home,” he said. “But for buyers, 2010 was a great year – they had lots to choose from, and they could negotiate those terms favourably.”

Galesloot said the average selling price last year remained relatively stable. “Most buyers bought within the $300,000 to $350,000 range. “The average purchase price in 2010 was $343,759.

“There were also times throughout the year when there were more residential listings on the market then we saw in 2009 when we were at the peak of the recession.”

But things started to turn around last fall when there were fewer listings and residential sales increased, he said.

Another interesting note about 2010 was that there were more homes sold in the $500,000 plus range than in previous years, he said.

“Having a home sell for $1 million in Red Deer is not something new,” he said. “In fact, it’s happening more and more frequently. Five homes sold within the $1 million price range in Red Deer in 2010.”

It’s a positive sign for the industry overall, he said.

This is an indicator of a stronger and recovering economy in the Red Deer and Central Alberta region.”

Meanwhile, as to 2011, a decreased listings inventory combined with the increased demand for homes points to a stronger market, said Galesloot.

“The growth in the real estate market experienced by realtors should strengthen during the second and third quarter of 2011,” said Galesloot. “I predict that is when realtors will start to see the results of what kind of year 2011 will end up being.”

Not that Galesloot is expecting a return to the selling frenzy of four to five years ago.

“I believe we are still in transition. And I would like to point out that the growth witnessed in 2006 and 2007 was outside of the norm.”

mweber@reddeerexpress.com

Just Posted

Rough sleeping encampment update

Over the summer, a collaborative cleanup and outreach team worked to respond to 83 camps

Red Deer’s up and coming rodeo star

Steer rider Carter Sahli feeling confident going into third Canadian Finals Rodeo

City takes action to help residents during postal strike

Steps to avoid late payment penalties

Red Deer Public Library’s Adult Literacy Program Receives Prestigious Literacy Award

Award celebrates outstanding achievement, innovative practice and excellence in literacy

Carmanah heading to the City on the heels of their latest single Nightmare

Victoria band performs at Bo’s on Nov. 22nd along with Hey Ocean

Federal carbon tax rebates will exceed the cost for most people affected

Officials say 70 per cent of people in those provinces will get back more than they end up paying out as fuel costs rise to incorporate the carbon tax.

Ponoka plays host to music arts program aimed at empowering youths

Ponoka Secondary Campus Grade 7s learned about awareness through song writing

$38,000 power bill in Ontario raising red flags for Albertans

MP Blaine Calkins is concerned about the potential costs of power for Albertans

Canadian troops, families take shelter in hotel after Florida hurricane

Most of the Canadians were evacuated from the military base before Hurricane Michael

Mega Millions, Powerball prizes come down to math, long odds

Biggest myth: The advertised $1.6 billion Mega Millions prize and $620 million Powerball prize aren’t quite real

2 Canadians advance to finals at world wrestling championships

Olympic champion Erica Wiebe just missed joining them with a loss 3-1 to three-time world champion Adeline Gray of the United States in the 76-kg event

Outdoor retailer MEC vows to boost diversity after online complaint

Mountain Equipment Co-op was criticized for perpetuating a white-only picture of the outdoors

Trump vilifies caravan, says he’ll cut Central American aid

Despite Mexican efforts to stop them at the Guatemala-Mexico border, about 5,000 Central American migrants resumed their advance toward the U.S. border Sunday in southern Mexico.

Rotating strike in Toronto will have ‘significant impact,’ says Canada Post

Canada Post union announces rotating strikes in four Canadian cities.

Most Read