Century 21 Advantage is proud to be a supporter of the Healthy Living Expo 2023.
Join us on January 21, at the Harvest Centre in Westerner Park between 10 am & 5 pm for a fun-filled and informative outing in support of healthy living.
Fun healthy lifestyle facts about living in Red Deer.
In addition to utilizing our outdoor spaces and trails, Red Deer has a Tennis club with year-round Tennis Dome downtown at the Rec Centre area. If you have heard about and want to try Pickleball, the city has 20 dedicated outdoor courts in the NE corner of the City south of Evergreen.
Sports options are plentiful in Red Deer as are the fitness studios, Yoga, and all kinds of fitness options. Whether you want to live near the Collicut or Rec Centre for a more active lifestyle or in a home more convenient to Pickleball or Golf. We have you covered.
Want to check out the Healthy Living Expo?
We're giving away Tickets. Enter here for a Family pass to attend the Healthy Living Expo on January 21, 2023, at the Harvest Centre in Westerner Park. Please fill out the form below or click here to open the form in a new window.
A closer look at MLS® listings and sales volume for Red Deer shows us...
Sales slowed down in November compared to previous years. While still ahead of pre-covid numbers of 2018 & 2019, November was notably slower than the previous two years.
The changing mortgage market and unbearably cold weather compared to the above seasonal October are contributing factors.
The seasonal trend for 2022 shows a strong spring market with sales and listing volume peaking in May. Do the results in the market reflect the interest rate increases announced by the Bank of Canada?
The next scheduled date for announcing the overnight rate target is January 25, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the MPR at the same time.
The Bank of Canada's rate increases has certainly had an impact. You can see the rush of deals in May to take advantage of low rates, and the volume decline with each jump in rates.
We're expecting this change will have a cooling off and adoption of the new rates for budgets. The deciding factor has always been overall affordability compared to renting.
It's hard to believe that the last time rates were at this level was 2008/2009.
Red Deer Lights the Nights is a series of activities over several weeks. Through December 17, fun and festive activities are taking place downtown and throughout the city.
Schedule of events
Below is a list of the fun events and activities that make up Red Deer Lights the Nights.
For more information please visit the Downtown Red Deer Business Association website: https://downtownreddeer.com/red-deer-lights-the-night/
Are you a hockey fan? The Red Deer Rebels are a must to see whether you love hockey or are new to the sport. The atmosphere of Live hockey is a real treat. The Peavey Mart Centrium has great vibes and amenities.
The Red Deer Rebels Upcoming Games
What is special about the Red Deer Rebels?
The Peavey Mart Centrium opened in 1991 it has hosted the CFR, World Junior Hockey Games, The Scotties Tournament of Hearts, and major recording artists such as Bryan Adams. With over 7,000 seats the Peavey Mart Centrium has some amazing box seats and a well-appointed concourse.
Currently, in the 2022/23 season, the Rebels are off to a great start sitting 2nd in their division. They have had great success on the ice, not just this season but in years past. Fans appreciate seeing the young talent grow and move on to the NHL Some notable Rebel alumni include Ryan Nugent-Hopkins, Dion Phaneuf, Colin Fraser and head coach Brent Sutter.
The Peavey Mart Centrium is one of many facilities at Red Deer's Westerner Park.
The Red Deer real estate market has certainly been experiencing a little bit of everything thing year. From a very robust spring to several interest rate increases the impacts of which we expected to see.
Upon first glance, the above chart looks "normal". It has the usual seasonal trend with a rise and fall in listings and sales volumes. The difference was actually in October. Where the sales volume increased over September.
This bump-up in sales activity goes against the expectations that the rising interest rates would deter more buyers. It could be the announcement created a bit of a rush. This combined with above seasonal temperatures throughout October, buyers were out in full force finding the right home before those rates increased again and before the snow flys.
A look at the sales of the last few years, the sales volume for October 2022, exceeded the previous years. The increase in sales combined with the lower listing volume creates a more "balanced" market dynamic. This is positive news for sellers and shows buyer confidence.
How's the Market? Are things still crazy with the interest rates? If you have these questions, you're not alone. We get asked these all the time. We're happy to answer how the local market is for your home.
Upon closer look at the Supply & Demand this year, the times are a-changing.
The local real estate market got "HOT" this year. The sales volume increased to its peak in April & May. Followed by an increase in supply, as the seller's answered the call and demand started to subside.
A number of variables influence supply & demand. Weather, the Economy, jobs and the migration of workers to fill those jobs, and interest rates. The interest rates definitely impact buying budgets.
Each community in Central Alberta has benefited from the improved economy. Reviewing our slides below you'll note some similarities as well as some unique differences. See comparisons below for January 1 - June 30, 2022:
Red Deer led the way with sales and listings as one would expect due to the population size of the community
Red Deer reported 1,183 sales, and 1,652 new listings (1,183/1,652) compared to:
Affordability of housing remains highest in Innisfail with the average house price reported as $337,286.
Meanwhile, Sylvan Lake has the highest average sale price with $425,460 for a home.
Welcome to June 2022!
Sun is shining, it feels like summer is here, and for sale, signs have been popping up as fast as dandelions out there.
May sales volume just squeaked past the high level we saw in April this year. 242 residential sales were reported in May 2022 on our MLS system. For Red Deer real estate this is a strong volume. We anticipate that sales volume would slump more due to the jump in interest rates. Add to that the Stanley Cup battle of Alberta, yes believe it or not very few people were wanting to do much of anything during game time than drink beer, eat chips and yell at the referees.
The number of New Listings on the market rose compared to April as well as last year. Indicating a shift in the supply and demand equation, moving the scales toward a more BALANCED marketplace.
What is the Significance of 242?
Not only is the Red Deer real estate monthly MLS sales volume for May 2022 higher than April this year. It is the 4th highest monthly sales volume of any month since:
May 2022 reportedly 242 Sales as of June 1 (**note there may be MLS database adjustments of a unit or two).
Have we hit the peak volume for the year? Probably. If you want to sell this summer, it would be my recommendation to fine-tune your value package. Meaning you may need to adjust the price, paint the trim, fertilize the lawn, clean the window etc... In short, improve the bang for the buck for your home. The luxury of testing the waters has started to pass for more price ranges.
Fortunately for you, we have agents that have been working here in Red Deer for over 20 years. They have worked through peaks and valleys with sales volumes, and know how to adjust to meet the current trends. Call us, we have a history in Red Deer as a company (since 1911) longer than any other real estate firm.
We are in a "Sellers" market for some property types and price ranges, while the rest of the market appears to be more balanced. So, contrary to headlines and rumours, not every home is flying off the shelf. Red Deer continues to be Single Family Detached market dominant. The translation: We sell more houses, and houses are the preferred or more popular style of housing. Townhouses, half-duplexes, and apartment condos all have their unique nuances within the market. ALL property types are seeing an improvement over previous years with the improved economy and real estate market.
The robust sales volume we saw in 2021 continues in 2022 and, in some cases, is even stronger. The months of inventory on hand (homes for sale) have decreased from 6 months of inventory in 2020 to 2 months in 2022. This is reflected in the ACTIVE listing numbers. At the end of April 2022, there were 455 active listings compared to 598 in 2020.
The top reasons anyone should purchase real estate are:
What is "Capital Growth" and why should you care?
The plain and simple explanation is, Capital growth is an increase in the value of your real estate purchase (asset) over time. Essentially you're buying low and selling high in terms of price, and you keep the difference. Knowing your investment is secure in value that it won't decline like the car that you drive every day, but in fact increases in value so you can sell for a profit aids in building wealth, and financial security in the future.
Some of the key metrics in determining if the market is displaying a positive growth trend are:
October is certainly displaying signs of price and volume growth over 2020.
Is it cheaper to own versus rent?
For our purposes, we will assume utilities are over and above for both buying and renting.
A common starter home in Red Deer that has 3 bedrooms, 2 bathrooms, no garage will rent for $1,600/month. We're seeing homes with basement suites get $900 down and $1,200 or more up in some cases. Rates may vary by location and age.
For our example, we will compare to a home that is built after 2000 and older than 2010. The location for that home will most likely fall in the Inglewood, or Johnstone areas with sale prices ranging from $275,000 - $300,000.
To purchase a comparable home today we will use a value of $285,000. Is the monthly payment including taxes going to be less than $1,600?
Let's break it down...
Typical taxes in Red Deer for that style of home, age and price are averaging 1% of the sale price so $2,850/ year or $238/month.
Using the Financial Calculator Page here. If we were to finance $285,000 with a 3% interest rate, amortized over 25 years, the monthly mortgage payments would be approximately $1,352. Note we're not taking into account a down payment, and CMHC premiums., for simplicity we're financing the full amount.
For a second opinion on our calculations, we encourage you to visit your favourite mortgage professional such as https://www.wehaveamortgageforthat.com/
Mortgage + Taxes = $1,352+ 238 = $1,590
Yes, it is comparable to renting. So next question, what's the benefit of buying then?
Real Estate is one of the very few assets you can purchase with a 5% down payment, make payments over time and get growth. Leverage is when you use debt to multiply the potential return on your real estate investment. A mortgage is a straightforward example of leverage in real estate. With 5% down you are using 95% leverage. You can not walk into a bank and ask to buy a $100,000 GIC with only $5,000. With real estate, you can borrow up to 95% of the home's value for your benefit.
Refer to our charts above as to whether or not the market is displaying positive growth signs.
Leverage reduces your RISK. IF that $285,000 home declines in value, the bank stands to lose more than you do.
To yield a positive return on not only the selling price but your minimal initial investment and monthly payments we will have to make some assumptions on how much real estate will increase over time.
Selling in 5 years?
It's ok if your first home is not your forever home. Families grow, and things change. So what would happen if you bought that $285,000 home and sold it in 5 years. Would you make any money?
Example 1: No Growth.
Bought at $285,000 and sold for $285,000. IS the profit $0.00? Well not exactly. You are still making monthly payments. 60 monthly payments. Your mortgage balance in the future after 60 payments will roughly be $244,000 (using our previous example).
Sale price of $285,000 - Mortgage Balance of $244,000 = Equity balance of $41,000.
Example 2: Growth of 3%
Let's pretend the market slowly goes up by 3% per year. Hypothetically then $285,000 in 2021 would grow to $330,000 in 2026.
Sale price of $330,000 - Mortgage Balance of $244,000 = $86,000.
I would buy now versus waiting.
What are your thoughts? Are these real-world examples? What variables are missing from the equation besides a 5% down payment requirement of $14,250?
Ready to get started finding the right home? Contact Us today 🙂
Is now the time to buy real estate in Red Deer?
A look at the numbers tells us the average sale price for September 2021 versus September 2020 is higher, sales volume is stronger, the days to sell is shorter, and the sale to new listings ratio is stronger.
How is the market this year compared to last year overall?
A little deeper diver into the numbers shows us that year-to-date numbers echo the monthly numbers but are more pronounced.
(***Note 2020 March thru May market volume was the lowest seen in many, many years. influencing the YTD numbers due to COVID lockdown).
How strong was September 2021 compared to 2020?
The sales volume in 2021 was the best sales volume we have seen since 2014!
An indication that the market is growing more positive, and the lowest point is behind us. If you were trying to time the market, we are now in a gradual upward trend.