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Greg Martens 403-391-8849

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Archive for October, 2016

Market Update – October 15, 2016

Thursday, October 27th, 2016

The number of active listings is down again, a very good sign that the economy and housing market are heading in the right direction. Sales were off a little in the first two weeks of October compared to the same time in September, but still very acceptable, all things considered.

The most active market continues to be between $300,000 and $400,000, which also has the highest number of active listings. A good balance between supply and demand in that price range means buyers will continue to have lots of choices while serious sellers will continue to have buyers for their homes.

Housing Starts Rebound – Todd Hirsch, Chief Economist, ATB Financial

Shiny new condominium projects and charming new subdivisions have become familiar sights in Alberta, but there’s no question that the pace of new home construction has been slowed by the recession. However, new data from the Canada Mortgage and Housing Corporation are more positive.

After hitting a multi-year low in August, housing starts in Alberta roared back in September. Builders began construction on nearly 29,000 units last month, up from less than 20,000 the month prior. (The figures are seasonally adjusted to take into account regular and predictable fluctuations that occur each month; they are also presented at annualized rates, meaning the number of homes that would be built in an entire year if the same pace of activity was maintained for 12 months).

There are few economic statistics that are better indicators of consumer sentiment than housing starts. The drop in new home building activity over the last two years—illustrated clearly in the graph below—suggests Albertans have become a bit more hesitant to make a major purchase like a new home. It also reflects weaker demand as fewer people have been moving to Alberta. Over the last 12 months, total starts are down 32 per cent compared to the previous 12 months.

The good news is that home builders are pulling back on supply in reaction to softer demand—and that has helped keep the residential real estate market in reasonably good balance. New home prices have been virtually unchanged in Alberta’s two major cities throughout the downturn.

rd-october-2016-graph housing-start-insert

 

September 30, 2016 – Market Update

Wednesday, October 5th, 2016

Sales in Red Deer in September kept pace with July and August’s, demonstrating continuing consumer confidence in the local real estate market.  The number of active listings dropped just over 5%. However, the slight increase in sales relative to a drop in the number of active listings pushed the market further into balanced territory.

Sales in September were most active in the $250,000 – $350,000 price range, which coincidentally, is also where there are the most choices for buyers. This appears to be the ideal market for buyers with plenty of choice, very low interest rates and the likelihood that the market is gradually starting to improve.

There are positive signs for energy prices in the months to come. OPEC has finally made an effort to work to manage oil supply suggesting that higher prices may be in the future. Oil prices over the $50US mark would definitely help some of our struggling oil companies while bolstering consumer confidence.  Recent activity in the central Alberta real estate market seems to support that idea.


Greg Martens, RE/MAX Real Estate Central Alberta
4440-49 Ave, Red Deer, Alberta, T4N 3W6
Tel: 403-391-8849 Cell: 403-391-8849 Fax: 403-340-3085
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