LIME GREEN REALTY MARKET UPDATE TO MAY 2020
Given the current economic situation, as anticipated, we have seen quite a significant drop in sales in April in comparison to this time last year. There were 57 sales in Red Deer for the month of April (single family, half duplex, townhouse and condo properties) compared to sales in April of 2019 which were at 135, meaning there has been a 58% drop from this time last year. This seems to be quite consistent to what other regions in the province have noticed as well.
Year to date sales in Red Deer for 2020 are currently at 296 compared to YTD sales as of April 2019 which were at 390. So overall we have seen a 25% decrease in sales compared to last year. This is not as bad as some may have expected. Although our typical spring market is not in full swing, there still proves to be an underlying demand in our economy.
Although sales have dropped drastically this past month, we have not seen a huge impact on prices in our Region. There was approximately only a 1% drop from the average sale price last year.
We have also noticed a positive increase in showings over the past 2 weeks, which will hopefully result in our sales continuing to increase as well. So far we have seen a 26% increase in sales in the last two weeks, compared to the first two weeks of April, so that is a positive sign!
Our inventory as of May 1 2020 is at 557, which is a 16% drop in inventory compared to May 1 2019. This drop in inventory could potentially help the sellers that are needing to sell right now, by having less competition. The average days on market is currently sitting at 108 days.
Prices in all of Central Alberta recorded a year-over-year decline of over 13% from April 2019 compared to April 2020. This can be related to the fact that there were more homes selling in the lower price range. When reviewing price adjustments, homes in the mid range of the spectrum have not changed significantly compared to the previous years.
Hopefully we are through the biggest decline in the real estate market activity, and sales will start to pick up as we move into the summer months! There proves to continue to be buyers in need of purchasing a home, or wanting to take advantage of the low interest rates. There also seems to be sellers in a position where they need to sell. I think buyers and sellers are feeling a bit more comfortable with the measures put in place by the government and policies we have implemented to help support buyers and sellers during this time.
LIME GREEN REALTY HAS STILL HAD GREAT SUCCESS THIS YEAR SO FAR!
We have sold 22 listings so far this year!
We are currently sitting at 55 active properties for sale in Central Alberta.
Our average Days on Market is sitting at 62 days, which is nearly HALF THE TIME compared to the boards average of 108 days!
If you are curious about what is happening in the market, whether you should buy or sell or just looking for advice, we are here to help anytime!
Trends seem to be changing on a daily basis, so as your real estate professional we can offer a bit more clarity, which is important in a time of so much uncertainty.
Please don’t hesitate to reach out.
Stay safe and healthy!