Local real estate market making slow recovery

  • Aug. 18, 2010 5:53 p.m.

Officials with the Central Alberta Real Estate Association are saying the market in the area is making a slow recovery from the downturn in the economy.

“But it is moving towards a more stable market,” said Sandi Gouchie, president of the Central Alberta Real Estate Association. “The real estate market typically slows in the summer months however, we didn’t anticipate this level of change. The sluggish market can be attributed to a number of reasons like families going on summer vacation, the unseasonably wet conditions which has left buyers and sellers dealing with the aftermath of flooded basements.”

She added although Central Alberta is still in recovery from the 2009 economic recession, economic experts are forecasting an increased level of activity in the oil patch in the fourth quarter.

“This should result in buyers who have been holding off buying to jump into the market to take advantage of lower interest rates,” said Gouchie. “The plus side of this market is the highly favourable conditions for buyers – potentially the best they will be this year due to the ample number of properties currently listing on MLS.”

The Central Alberta Realtors Association processed 324 sales on its Multiple Listing Service (MLS) in July, a decrease of 36% compared to the 506 sales during the same month last year and a decrease of 8.39% compared to June 2010.

In July, the Central Alberta Realtors Association’s MLS received 17.5% fewer new listings, 1,034 compared to the 1,254 new listings received in June. At month’s end, the total active inventory was 4,845, 22% more than was available in July 2009.

The average sale price for homes in Red Deer increased in July compared to June and also compared to July 2009. The average sale price for homes in rural areas increased in value compared to June, however decreased in value compared to July last year.

Last month the average price for single family detached homes in Red Deer was $372,902, an increase of 4.5% compared to June ($356,647) and an increase of 9.84% compared to $339,495 in July 2009.

The average price of townhouses in Red Deer last month was $239,251, a 12.5% increase compared to June ($212,553) and a 9.87% increase compared to July 2009 when it was $217,768.