Welcome to Summer!
Officially we marked the summer solstice(equinox) 2009 this past weekend. It is to early to say whether or not the peak of sales activity also aligns with the longest day of the year, historically the two are close. The kids in school are no in their last week, and Canada is one week away.
July and August tend to be full of family vacations, and enjoying the short Canadian Summer. If you’re selling you should be having consultations with your Sales Associate on market conditions and what they should expect this summer.
Last week was a high point for 2009:
Week ending June 21st and the sales to new listing ratio climbs to a new high point for 2009 at 85.48%! Sales ratios at this level typically reflect a “sellers” market. To declare we are in that state is very premature.
We do have a decrease in Listing inventory for the City of Red Deer, but we still have a a competitive selling environment. Some price points may appear to be reacting as a seller’s market while others are clearly in a buyers market profile.
These profiles are not only limited to price point but areas and sub areas. Now is a very dynamic time to be on the market selling. Be sure to talk to a knowledgeable Local Expert on the nuances of your area.
Those of you following my weekly real estate stats will notice that reported sales were in fact higher a few weeks ago and have been performing well week in and week out for some time now.
If you are buying today you should take special not of the gap between the red line and the blue. The narrower this becomes the more listings are not remaining on the market. It means that their are less homes available each week than previously. Combine that with the rise of interest rates and it appears it would be a wise choice to act swiftly to capture the lowest possible interest rate and the selection still available.
Mid May looks like the high point for “pending sales” so far. Largely due to the threat of rising interest rates. Rates were climbing from 3.69% to 3.89%. Today the latest rate sheets indicate the best 5 year closed rates are now 4.29%.
Your Friend in Real Estate,
— Patrick Galesloot