Home sales in Red Deer during this heated pre-spring market are more interesting than ever. Homes priced correctly are selling quickly and it appears there are more buyers searching than there are homes for sale. Detached homes sitting longer than two weeks are just priced too high less and less available other types of properties are heightened activity too.
From month to month we generally see higher sales in the spring and fewer in the summer. But this year the peaks and valleys might be less extreme with buying forced to be spread out through the year more.
Each month prior to now I focused on and posted only detached home sales but from now on I’m going to also include home sales to also include attached homes.
This past month in March detached home sales were 4.7% higher than last March. Sales have been higher almost every month for over a year but this year in January detached home sales were 17% higher than 2021 and in February detached home sales were 12% higher. It’s interesting that the percentage margin is shrinking each month when buyers are having a harder time finding a home to purchase at a time when sales generally rocket up. I attribute it to there not being enough homes to satisfy all the buyers searching. Strangely enough, we are seeing lower and lower inventory each month in the months where sales numbers normally increase.
We’d definitely be seeing much higher detached home sales if there were more detached homes for sale.
In March 2021 126 detached homes sold and this year in March 132 sold. Taking a closer look we can see that there were way more homes available in March 2021 than there were last month. In mid-March 2021 there were 276 detached homes for sale and this March there were only 167. Also, in March 2021 an average of 99 detached homes were selling each month, and in March 2022 the average was only 106. 64% of the homes listed for sale are selling right now and at the same time last year, only 36% were selling. If you consider that there will always be a portion of homes listed for sale priced too high, we could estimate that right now probably 100% of homes priced right are selling each month. If this is true, if there were more detached homes available for sale right now, sales numbers would be much higher than they are?
Another interesting stat that also demonstrates the impact inventory levels are having on sales numbers is the change in the number of properties other than detached selling in Red Deer. In the first quarter of 2022, 44% more attached properties sold than in the 1st quarter of 2021. February alone this year saw a 77% increase in attached properties selling while the sale of detached homes only increased by 12%. It looks like, with not enough detached homes available for sale, buyers are looking at other options.
Increasing prices month after month might also be encouraging buyers to pursue more affordable housing options.