It’s been a trying year for Central Alberta real estate.
Home sales are down 16.1 per cent (3,090 sales) through the first nine months of the year, according to the latest Multiple Listing Service statistics from the Central Alberta Realtors Association.
That compares with a provincial drop of 3.8 per cent.
On a monthly basis, September sales were down 10.2 per cent to 369 sales, compared with September 2015.
However, those looking for a home have more choices. There was a record 859 new residential listings last month, up 3.6 per cent over the same month last year.
Nine months of inventory is available, up from 7.2 months a year ago. Inventory is based on the number of months it would take to sell all the homes at the current sales rate.
The sales slump does not appear to have led to a housing fire sale. The average sale price for homes so far this year is $308,469, down only 2.8 per cent for the same nine months last year.
Dale Russell, broker and owner of Re/Max Real Estate Central Alberta, said while sales are slower than each of the last two years the markets remain “quite stable.”
“Typically, when you get into a prolonged slowdown what happens is your inventory levels start to get completely out of control,” he said. “They’re higher for sure, but they’re not really bad. They’re not anywhere near the levels they were in 2009.”
When people are reduced to selling their homes because they can’t pay the mortgage inventory soars and prices usually drop.
Russell is leery of average house price statistics, which are easily skewed by a handful of high-end home sales.
While higher-end homes have seen significant corrections in cases, house prices for the typical home have not changed much.
“We’re not seeing any catastrophic things going on, for sure.”
Red Deer sales have remained steady from July through September. There were 142 homes sold in July, 143 in August and 145 in September.
Sales were most active in the $250,000 to $350,000 range.
Looking ahead, there are some positive signs. Oil is above $50 a barrel, which is an important benchmark when it comes to consumer confidence, he said.
On the down side, new tougher mortgage rules are already having an impact on the market because it is more difficult to get financing. That especially affects those looking to upgrade to a bigger home, he said.
pcowley@www.reddeeradvocate.com