The number of residential MLS sales in central Alberta in the first 3 months of 2018 was equal to the first 3 months of 2017. Local markets vary, with Red Deer and Ponoka up year over year, while Sylvan Lake, Lacombe, Blackfalds, Penhold and Rocky are down.
The biggest challenge we face as realtors is the public’s assumption that economic recovery means an immediate return to increased sales and higher prices. In fact, the real estate market recovery will lag two to three years behind this economic recovery, which is weaker and slower than past recoveries.
Further proof is that the combined median sale price of homes in eight central Alberta municipalities reached its lowest point in five years in the first quarter of 2018. The previous low was reached two years after the last economic recovery was announced.
Overpricing is the single biggest mistake a seller can make in a market where there are far more sellers than buyers, and it leads to longer sale times, lower prices and seller frustration. Less than 2 out of 10 homes listed on the MLS are selling each month in every central Alberta market. The one or two that sell will be homes that are priced according to local market reality.