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Lots of choice for house buyers this summer

House inventories are high as buyers take their time
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Red Deer realtor Mike Snell said he has never seen so many homes on the market.

“Right now, we have a high level of inventory — the highest I’ve seen in my time,” said Snell, who has been selling homes for 15 years.

The Multiple Listing Service (MLS) for Red Deer counted 882 listings last month, up from 773 last year.

For Central Alberta, MLS recorded 1,924 units sold to the end of June, up from 1,877 a year ago. In 2016, there were 1,934 units sold by that point.

In Red Deer, there were 712 units sold in the first six months, up from 674 last year but down from the 799 units that changed hands in 2016.

In most Central Alberta communities, the number of sales is close to the two previous years, according to MLS statistics.

While the market is challenging, Snell sees signs the long-awaited uptick is on the way.

“I think there are a lot of people who do want to move,” said the Re/Max Real Estate Central Alberta realtor and president of the Central Alberta Realtors Association.

However, a number of factors are keep sales to a modest pace. New mortgage qualification rules that kicked in at the start of the year have made buying a home more difficult.

As well, those who want to trade up must often wait longer to sell their old home.

And with plenty of homes on the market, people are in no hurry, so the usual summer distractions of holidays and camping may be delaying some buying decisions.

The sheer number of choices can also have an effect on sales. When buyers have a lot of choice, they take longer to pull the pin.

“There are so many homes people tend to get a little overwhelmed.”

Snell expects to see sales pick up in the fall, and the inventory begin to drop again and people start to take advantage of the good pricing.

“I think confidence (in the economy) is slowly coming back, but it’s not there yet.”

Typically, there is a lag before real estate markets feel the full effects of economic rebounds, he said.

“When the economy starts to turn, it takes a while before we see it.”



pcowley@reddeeradvocate.com

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