By Sheldon Spackman

Encouraging Signs

More homes selling locally but prices still trail last year

Jul 27, 2020 | 3:06 PM

The local real estate market continues to rebound but remains still trails where it was at this time a year ago.

According to the latest figures from Central Alberta Realtors Association (CARA), there were 506 homes sold in Red Deer last month, down from 649 in June of last year.

Year-to-date numbers show 1,667 home sales in Red Deer during the first half of 2020 – compared to 2,077 home sales during the first six months of 2019.

On a positive note, home sales in Red Deer have steadily increased each month so far this year.

However, average prices in Red Deer are lower when compared to 2019. In May (the latest numbers available) the average sale price of a home in Red Deer was $291,095 – down from $324,991 in May 2019.

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Year-to-date figures show an average sale price of $303,841 in Red Deer through May. That compares to $314,120 during the first five months of last year.

On average, homes sold in Red Deer last month had been on the market for 61 days compered to 82 days the June previous.

Year-to-date numbers show that it’s taking an average of 102.5 days to sell a home in Red Deer in 2020, up from just over 82 days during the first six months of last year.

(Source: Central Alberta Real Estate Association)

Allan Melbourne, President of the Central Alberta Realtors Association says last month’s numbers are very encouraging.

“It appears as though buyers and sellers wanted to get going once some COVID-19 restrictions were lifted,” says Melbourne. “As is most often the case, units in the lower end of the price point (under $350,000) continue to be the most active portion of the market.

“Averages are very tough to comment on given how COVID has impacted the market and our economy,” he continues. “We still don’t know what the new ‘normal’ for days on market will be or should be – there are listings selling quickly and there are those that stay on a little longer.”

Melbourne admits he’s a bit surprised at how strong the July market looks so far.

“We may be ahead of 2019 numbers month-to-month,” he speculates. “I wished I had a crystal ball to predict the future – a lot of what is going to happen heading into the fall and winter is going to depend on if the economy continues to improve, oil and gas continues to gain, and the big question in my mind is COVID 19 – will there be a second wave this fall? And if so, what effect will it have on everything, including real estate?”

Melbourne says that as always, supply and demand dictates prices when it comes to real estate.

“Currently, we have a good supply of homes across all price ranges, mortgage rates are good, and it’s a good time to think about making a move.”

Listed below are the latest stats from elsewhere throughout central Alberta last month (June 2019 numbers in brackets):

Community Units Sold Average Price Average Days to Sell

• Blackfalds, 72 (105) $273,938 ($308,314), 40 (113)
• Innisfail, 39 (56) $283,100 (May) ($245,225), 98 (138)
• Lacombe, 82 (100) $296,981 (May) ($338,528), 75 (87)
• Penhold, 24 (32) $269,450 (May) ($316,627), 96 (145)
• Ponoka, 35 (49) $229,667 (May) ($273,833), 83 (May) (50 – May, 2019)
• Rocky, 31 (34) $207,633 (May) ($269,333), 178 (May) (121 – May, 2019)
• Stettler, 36 (44) $177,950 (May) ($201,111), 207 (119)
• Sylvan Lake, 119 (138), $342,585 (May) ($299,706), 124 (71)