Real Estate Market in Red Deer
Real Estate Market in Red Deer
In a season when pocket books are tightening and wise spenders are picking up deals, the housing market in Red Deer continues to fluctuate. Buying a house for the first time, or the tenth, can be both exhilarating and frightening. The smell of freshly laid carpet, painted walls and a welcome basket to greet you is the start of one of the many major experiences of life.
2009 saw a dip in housing purchases and the dollar amount being paid out. Most popular to move into, or build, is still the single family home, usually ranging around the $350,000 mark for new.
CMHC stats for September 2009 state that in Red Deer 87 single family homes sold with the average listing price at $344,847 and the average sale price going for $336,052. Clearly, home owners looking to sell are having to be flexible if they want to downsize or upgrade to something different.
According to Nicole Maurier, Realtor for Century 21-Advantage, “With prices adjusting downwards, and with fantastic interest rates, right now is a great time to buy! The difference we see now, is that buyers have a lot more homes to choose from, they are able to get more home for their dollar, and mortgage brokers are working hard at seeking out the best rates and terms for their clients.”
A local mortgage-broker company, Get ‘Er Done Girls, is seeing such a dramatic variety in clientele that there is no easy way to predict who can qualify for a mortgage or who is seeking for one.
“We are seeing all types of clients entering the housing market from first time buyers to seniors wanting to downsize, but keep funds available through lines of credit. Of particular interest is the investor who has re-emerged who wants to leverage current properties to buy new rentals,” says Alyson Thiessen, a broker for over 10 years at Get ‘Er Done Girls.
The process to get a mortgage can be confusing and frustrating for many, especially first-time homeowners, but Get Èr Done Girls helps alleviate the confusion, answer questions and secure the best rate they can with the banks.
“I can say that people are continuing to qualify for houses for several reasons. First of all, with houses having come down in price, mortgage amounts are lower and easier to qualify for. Secondly, rates are at all time lows. Couple a very low rate with a 35 year amortization and that makes for an attractive payment for any buyer!” says Alyson.
According to a study done by MacKay et al (2008) the labour market trend has propelled housing demand and investment in housing, thus home ownership has increased. Another factor that has influenced home ownership is education. Education levels have improved among Red Deer residents with a greater percentage of the population having some form of post-secondary education and being in occupations that have higher incomes. The government has assisted in helping the community get their first home through programs designed to make it easier for young families to purchase their first home, such as sales tax rebates for new homes, access to mortgage loans for up to 100% of the value of the home, and loans and subsidies for first-time buyers and young families.
Marie Oro, Co-Owner and Associate of MaxWell Real Estate Solutions shares, “It’s the biggest purchase people will likely ever make. People have been on the internet and researched when they come in – they are a lot more educated. There’s definitely not as many people doing the fix and flip from the boom. It’s just not happening. The attitude of get rich quick has disappeared,” she laughs, “People are more wise.”
And why not take the time to educate yourself when you have it in today buyers’ market. And you get variety. Condos and apartments. Townhouses and bi-level splits. Acreages and mansions exist for buyers’ pleasures.
“Obviously single family homes are clearly what buyers are purchasing. Why? Again, with price adjustments, and great interest rates, buyers can purchase more house for their bucks!!” says Nicole Maurier from Century 21-Advantage.
Everyone from Realtors to brokers to builders are having to get creative to remain competitive in the Red Deer market.
Over the last decade central Alberta has easily been in the top five hottest new home markets in Canada. Abbey Master Builders has been the recipient of many local and provincial awards, including the Award of Excellence, Customer Choice Award, and Best of the Best. The most recent award is Builder of the Year for 2009. Earning the distinction of “Master Builder” status requires ongoing training and certification.
Carla Sonnenberg, Executive Administrator at Abbey Master Builder states, “A lot of the homes we’re building today were only dreamed of when we started in 1976. The revolution in ideas and materials over the last ten years has resulted in higher quality, more energy efficient homes. Today’s consumers are very environmentally conscience and appreciate the extra work Abbey Master Builder does to make our new homes “greener” such as energy efficient furnaces, windows, low flush toilets etc. As a `Built Green` member we have many options available to the new home buyer.”
Carla sees the market showing positive indicating factors of strength such as historically low interest rates, the strong Canadian dollar, oil prices and the steady growth in the stock market. The central Alberta corridor between Edmonton and Calgary has always shown strength and stability even in the toughest markets.
The phrase “this too shall pass” seems to ring true. Recession. Economic slump. Downturn. Whatever name you put on it, people are still succeeding. It is clear that the strong economy of central Alberta will once again rise up, though no one knows exactly when. For now, opportunity abounds to make one dream after another come true.
Article written by Lani Ledingham
October 2009