The wild ride has ended with buyers keeping a light hold on the reins while Central Alberta housing markets stabilize, says the Central Alberta Real Estate Association.
Residential housing sales had fluctuated wildly in the first part of the year, but started to stabilize later on and will likely remain stable through much of 2010, president Sandi Gouchie said Thursday.
“We’re confident that the consumer is going to be more confident with their job situation and incomes. They’ll make informed decisions and we anticipate them being ready to come back into the real estate market to sell and to buy,” said Gouchie.
“We’re anticipating growth (of) four to five per cent.”
Levels of growth will depend on how many jobs open up. At this point, Red Deer’s growth is coming largely from babies and not from an increase in job opportunities drawing new people into the region, said Gouchie.
She does not see significant improvement in the employment picture through 2010.
The energy sector still takes centre stage in the region’s employment picture, she said.
Oil and gas companies are still dealing with unknowns, including costs related to new rules expected in environmental compliance.
The oilfield will remain at a fraction of its potential until those issues are resolved, said Gouchie.
Interest rates will also play a role, with the Bank of Canada expected to announce a modest increase later in the year. People will tend to shop earlier in the year in an attempt to beat that increase, although it is not likely to be significant.
They year has opened with a good inventory of houses for sale, with supply and demand reducing inventory and pushing prices upwards later in the year, said Gouchie.
“I still think that the buyer has a little bit of an edge,” she said.
Prices will remain stable with the median price for single family dwellings to rise by three per cent over 2009, reaching $325,000. That’s still the second highest median in the last five years, with the record set in 2007 at $330,000.
The total supply of residential units for sale through will rise by 177 to 4,300 units, a 4.3 per cent increase over 2009, but still short of the five-year average of 4,870 units sold.
Other factors affecting housing markets will include federal initiatives, construction of new homes and the world economy in general.
Gouchie said Stockwell Day’s recent appointment as president of the treasury board indicates that the government will tighten up on the money it has made available for economic stimulus.
Day is seen as a fiscal hawk and is therefore not likely to favour programs than involve more spending, she said.
bkossowan@www.reddeeradvocate.com