Red Deer home sales have done better than expected since the onset of COVID-19 and it happened again in November. Don’t get too excited though, we are only comparing to 2019.
2019 was the slowest sales year for the Red Deer real estate market over the last decade so 2020’s higher sales isn’t really a big feat. Comparing higher sales to the lowest sales year in a decade doesn’t say much but it might indicate a change in the air. And if sales are higher than last year during such an economically strange year, could it be a turning point?
People who’ve purchased in 2020 are partly motivated by lower prices. After a decade with no real price improvement, it’s bound to happen sooner than later. And extremely low-interest rates helped too.
Average home prices stable
I should also mention that the average home sale price in Red Deer has done well this year (click on the image to the right). That can happen with higher sales but this year it was also emphasized by lower than normal inventory levels.
Inventory lower this year
The COVID-19 issue likely parked a number of would-be sellers in 2020. With fewer homes on the market and higher sales we will definitely see upward pressure on prices.
It’s sort of been a “perfect storm” for the Red Deer real estate market with the important variables stabilizing prices.
I guess, all-in-all we should be happy that our local real estate market has weathered the COVID-19 storm rather well.