Interest rates, prices, low inventory, decreasing prices, sales…
Higher interest rates
With increasing interest rates, everyone thought the main real estate conversation in 2023 would be decreasing prices. But why aren’t prices decreasing? The reason is the lack of homes for sale. It’s true there are fewer buyers because of higher interest rates, but for the same reason, there are fewer sellers in the Red Deer real estate market.
Red Deer – Low Inventory
Higher interest rates slow buying activity but they also slow selling activity. A homeowner who would like to sell is usually needing to buy also. And right now more sellers are choosing to sit tight. And because there are fewer homes for sale buyers are willing to pay closer to the asking price to lock a property down.
The biggest problem the Red Deer real estate market is facing right now is low inventory. This is good for homeowners who want to sell. Homes are selling quicker than normal. However, for buyers, the low inventory is making it more difficult to find the right home. And low inventory will upward pressure on prices.
However, things might be starting to change as we enter spring tomorrow. For the first week in a long time, the weekly listing vs sales comparison showed a surplus rather than a deficit. This week 10 more homes entered the market than left the market. And for the last 4 weeks, there was an average deficit of -10.5 homes on the market each week.
The spring market is when we see the most listing activity and buying activity. Let’s hope we see more homes hit the market so buyers have more selection. But not too many or prices can slide.
If you’re planning to sell this year here are some helpful tips – https://www.ionrealestate.ca/selling-your-home/
If you’re planning to buy and want to do your best plus save money, click here – https://kingblake.com/buying.html