Our 'Market Updates' are updated every Friday, so please check back for weekly updates.
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|
Market Update to Aug. 5/10 Red Deer
|
|
PriceRange
|
All
Active
|
Pending
|
Active 1 Year Ago
|
Sold MTD
July 29/10
|
Sold MTD
July 31/10
|
Sold MTD
July 31/09
|
|
< 100
|
24
|
0
|
25
|
3
|
3
|
5
|
|
100 – 150
|
46
|
0
|
26
|
3
|
4
|
4
|
|
150 – 200
|
81
|
2
|
71
|
7
|
7
|
20
|
|
200 – 250
|
111
|
4
|
103
|
21
|
22
|
35
|
|
250 – 300
|
150
|
12
|
80
|
25
|
26
|
42
|
|
300 – 325
|
73
|
5
|
54
|
8
|
9
|
19
|
|
325 – 350
|
77
|
1
|
43
|
16
|
18
|
15
|
|
350 – 375
|
53
|
2
|
33
|
5
|
7
|
9
|
|
375 – 400
|
54
|
2
|
34
|
5
|
5
|
8
|
|
400 – 450
|
51
|
0
|
40
|
7
|
7
|
8
|
|
450 – 500
|
34
|
1
|
25
|
6
|
7
|
7
|
|
500+
|
78
|
2
|
69
|
10
|
11
|
7
|
|
Total
|
832
|
31
|
603
|
116
|
126
|
179
|
|
Avg. Price
|
$326,984.
|
$325,890.
|
$325,169.
|
$326,077.
|
$297,617.
|
|
Days On Market
|
53
|
49
|
51
|
51
|
49
|
Is This a Good Time to Purchase a Home?
Canadian Economy Sputters Ahead in May - By Todd Hirsch - Senior Economist, Alberta Treasury Branch
After a bit of a pause in April, the Canadian economy resumed some modest growth in May.
On a month-over-month basis, and adjusting for seasonality, the value of all goods and serviced produced in Canada grew by 0.1%. This was essentially in line with economists’ expectations. Measured against the level of GDP in May 2009, the Canadian economy is now 3.8% larger.
By sector, the big leader in Canada was the mining and oil and natural gas extraction industry. It expanded by 3.4% between April and May, led by gains in both oil and natural gas output. While the monthly GDP data are not available provincially, much of this activity probably originated in Alberta. Support activities for mining, oil and gas extraction (+4.8%) also performed very well.
Construction activity slipped 1.6% in May, led by a large drop (-3.8%) in residential building construction. Partially offsetting this was an increase in Canadian non-residential building construction, which was up 0.8%.
May’s GDP data are not likely to change the minds of anyone at the Bank of Canada. Indeed, with the modest (yet positive) growth in May, the Bank will probably be encouraged in their view that the Canadian economy is still expanding, but at a more moderate pace than that seen in the final quarter of 2009 and the first quarter of the year.
There are still many more weeks of economic data between now and the next Fixed Announcement Date of the Bank of Canada (Sept. 8th). But barring any major disruptions to the global economic situation, the Bank is likely to continue with its plan to keep reducing the current amount of monetary stimulus in the economy— that is, interest rates will probably go up.
Market Comment – Good News! It seems the Canadian economy is making slow progress and there is some light at the end of the tunnel.
Especially good news was the fact that the sector that is leading growth is mining, oil and natural gas extraction, which will impact central Alberta in a very positive way. Increased oil and gas activity will lead to increased demand for homes in central Alberta. Increased demand means less inventory and increased prices.
While it isn’t typically considered good news, the prediction for higher interest rates is also an indication that the economy is growing. If interest rates go up, mortgage rates probably won’t be far behind. Increased interest rates mean higher home ownership costs.
It is a great time to buy a home! Lots of choice, low interest rates and low prices only happen in a slow market.
