What does a Balanced Real Estate Market Mean?
It’s more than an equation or ratio of 50/50 (50:50). Where the Incoming listings (the supply) meet the demand or sales volume with respect to real estate listings.
In June the number of “new listings” that came on the market as new, this also would include “relists”, was 326 residential real estate listings in Red Deer. The demand or sales volume for June 2021 was 205. As a percentage one could say that 62% of the”new” listings sold. A little higher than 62% we would start entering into a seller’s market more so. However when we include the active inventory total the supply swells to 696 residential listings in Red Deer, and the demand of 205 sales would be just 30% of the listing inventory. In other words, 70% of the listings do NOT sell. Which was the case in June.
Despite all the media attention regarding a heated real estate market, this is a limited view of what actually is going on. In the slides, you will notice that the June sales volume for 2021 was the highest since 2014. Which is a very positive reflection of buyer confidence, and overall economic strength in the area. Things are looking up.
The typical “spring” market bump is more elongated this year. We’ve seen a strong April and May, and June is following that same trend. As buyers, you will notice some product types and price ranges are selling faster than others. This is due to the number of listings in that particular price range. Most likely the “hot market” is actually a sweet spot near the average price for the area or month. In this case, the average single-family home sale price was $376,207.