Actually, the best time to buy was last month but we can’t turn back time.
What’s happening in our local market?
The local market was hit hard when COVID-19 health measures were put into place but since then it’s surprisingly bounced back. Whether it’s everyone who waited now shopping, low-interest rates, or consumers finding there’s no better place to invest – the Red Deer market is in great shape
Smart home buying time
The best time to buy a home is generally when prices are at their lowest but how do you know when a market is at it’s lowest point? You can’t. Unfortunately, the only way to see a market’s low point is looking back after the fact, after prices have started the climb.
A person can track stats to estimate approximately when prices might be at their lowest and make a purchase then. It can even be a safe plan because the low point can span a long time period. But when we see a market transition from “buyer’s market” to “seller’s market” prices will generally increase.
Red Deer is currently experiencing a “seller’s market”
Home sales in Red Deer were high enough in August to really eat away at our market’s inventory level. As of August 31 2020, the Red Deer real estate market’s m.o.i. (months of inventory) went below 4 months. Looking at the chart above you can imagine us sitting in the grey zone just right of the dotted line. Now is the time to buy and if m.o.i. remains low waiting will have you paying more.
When an m.o.i. is as low as it is now houses sell quicker and prices in increase favouring the seller. Since I first started tracking inventory in Red Deer we haven’t seen m.o.i. as low as right now.
There’s still a chance things will turn around where we experience a “buyer’s market” again but an inventory dip and high sales are the best indication prices will increase.
For assistance buying at the best price call Blake King with Big Earth Realty. Blake can find you the right home, get you the best price, and he gives his buyers $1000 – $2000 cash-back on their purchase.