Latest headlines are still about Chrysler and GM, still talking about the deficit spending and the "bad" economy, still talking about politics etc... Now let's talk real estate.
Sales for May 2009 increased from April, and overall it was a busy month. There was a total of 197 MLS® sales in the city of Red Deer for May 2009. This was up from the 178 reported in April, an increase of close to 10% in one month.
It did not start out that way. The real estate sales in Red Deer can be influenced by the weather. You may recall that we started cool and wet and were greeted with snow to end the long weekend, with that cold wet weather was a softer sales performance. Snow in May is not all that new right so can we look at inclement weather as factor influencing performance? Perhaps we can, as temperatures heated up so did buying activity with weekly sales increasing from the long weekend.
2009 weekly Sales and Listings Comparison
Week to week the sales are increasing and the listing inventory starting to slow down. Many people we talk to ask us about the market, and "how bad is it? We see more for sale signs". "For Sale" signs are a sure sign of spring. Each year when the snow melts "For Sale" signs pop up just about as fast and prevalent as dandelions. Why is that? Mostly because we don't like to be moving in -40C snow bound conditions.
"So how is the market compared to previous. We're not as good right?"
That is another common statement and question we hear lately. "Not as good compared to what?", I think is the answer. The best check up or comparison is to look at previous years and previous months. May MLS® sales in the city of Red Deer total 197.
As noted above, MLS® real estate sales in Red Deer have had strong positive growth since the start of 2009.
Sales continue to center around $300,000 with increases in sales occurring in higher price ranges. The average sale price increased to $309,492 for May from in April. As more people are able to move up the average climbs. This is a healthy indicator of the market. Keep in mind that finding that average home is virtually impossible, and that not all price ranges are experiencing the same level of sales growth. Higher end homes are slowly starting to sell. The bulk of the activity as indicated by our graph is $275 - $350,000.
How does May 2009 stack up?
May MLS® sales for the City of Red Deer was the third highest on record and the sales to new listing climbed to 60% moving us more into a "balanced market" from a "buyers market".
If you are selling today it doesn't mean that things are all roses, it does hold optimism. With listing inventory in Red Deer at 640 units it is still quite competitive.
Sellers need to be grounded in their expectations if they want to sell this summer, and be fully aware that they face some stiff competition and should price and showcase their home well in order to garner a buyers attention.
Buyers today still have the luxury of selection and low, low, low interest rates. However, do not be surprised if you find the right home and are forced into a bidding war. Well priced homes attract multiple buyers.
If the value is there buyers today must have their finances in order and be prepared to act swiftly. This is particularly more common around that middle price range.