Prices have continued upward and it will likely continue, but for how long?
If you ask most people when the best time to sell a home is, most will say springtime. More homes sell in the spring so people naturally think it must be the best time to sell. However, because everyone’s thinking the same thing, the market floods with homes for sale in the Spring, and this diminishes its efficacy.
In 2023 the market never saw a flood of listings at any point in the year because there were fewer homes listed and more buying than expected. Each week the Red Deer market sales and listing comparison reports have shown more properties selling each week than were being listed.
This has caused our local real estate market’s inventory to go lower each month. And with demand up and supply low, homes are selling quickly and prices are still nudging upward.
This year, there just haven’t been enough homes on the market to satisfy all the buyers. It’s rare when a market hits the perfect state but it’s been this way in Red Deer for a while now.
- Inventory is lower than it’s been in over a decade.
- Some people speculate interest rates will increase more.
- The 12-month running price average continues to increase.
- And, because of 2 and 3 above, home sales are high but not as high as if there were more homes available for sale!
Why is right now the best time to sell?
We will probably see the “seller’s market” continue for a while with buyers rushing to pre-qualify a mortgage before interest rates increase even more. The upward pressure on prices that sellers are benefiting from will subside when inventory balances. If higher interest rates cause buying activity to soften and if more homeowner list as their mortgages mature, we’ll see more homes on the market.
This year we haven’t witnessed the flood of listings we often see in the spring because there’s been pent-up demand and higher than expected sales. If the flooding happened it wasn’t noticable because homes have flown off the market (if priced correctly). With not enough properties for sale, there are still a lot of buyers searching and waiting. And many buyers may still have lower interest rates in place having been pre-qualified prior to increases. If you’re planning to buy this year get pre-qualified now!
For sellers, the spring market has been exceptional, and rapid sales will continue for at least a little longer. Right now, without a doubt, the current market is perfect for selling.