Real Estate Market in Red Deer- What to expect
Red Deer is know as a friendly prairie town in Alberta, know as the third largest city and directly between Calgary and Edmonton. The Real Estate Market in Red Deer is dynamic and has changed significantly since the 2014 housing boom. You can still get the quiet and relaxing neighbourhood home with great local amenities. Red Deer is one of the most ideal city to live in Canada not to mention its diverse community. Aside from the busy business capital of Red Deer (which most of commercial properties are located) residential properties occupied the majority of the land area. Not long ago, Red Deer is one of the underdeveloped cities. But thanks to the hard work of the federal government, Red Deer flourish year after year. As a result, Real Estate Market in Red Deer remains stable compared to other nearby cities.
A closer look at Red Deer Real Estate Market
For property investors, studying the real estate market is like checking your car tires before you drive. Many investors rely on the real estate market news to decide how much and when is best time to make a move. The Real Estate Market in Red Deer is promising this 2019. Central Alberta Real Estate market forecasted to have stable prices regardless of the expected fluctuation of oil prices. Despite of the decrease home sales last 2018, the new mortgage rules this 2019 is expected to help with this year sales.But, how is the of real estate market in Red Deer works? In what area you should focus on? We will discuss the vital points of the real estate market in Red Deer.
Red Deer Real Estate Market Sources
Before you go ahead and make any decision about your investment property, you should know where to get reliable information and who to seek for advice. Get reliable information about real estate market updates with the Canadian Real Estate Association and the Central Alberta Realtors Association, there are the most trusted sources. A lot of real estate professionals are members of the association and also they have the updated or active Red Deer real estate listings. They provide news update about the real estate activities. They also have the latest property listing; don’t forget to narrow down your search within Central Alberta. This way you do not only watch the real estate market with Red Deer but also the news and updates about properties around Red Deer which likely have an impact on home sales.
New Mortgage Rules affect the real estate market in Red Deer.
Understanding how mortgage works within your target area will help you greatly on how to handle your investment. Most investor or even the simple home buyers didn’t think about this aspect thoroughly which might result on foreclosures. But what mortgage rules you should keep in mind. Here are the major mortgage rules you should know by heart. If you are looking for your dream home, you should know that there are two types of residential mortgage.
- Conventional mortgage- which means the down payment should be equal or more than 20% of the property value. You also need to pass the mortgage stress test that is higher than the mortgage contract rate or meets the 5 year benchmark rate from the Bank of Canada.
- High Ratio- means the down payment is less than 20% of the property value plus the mortgage insurance. You also need to pass the mortgage stress test that is higher than the mortgage contract rate or meets the 5 year benchmark rate from the Bank of Canada.
Also, keep in mind if you are purchasing a property it is Important to get a mortgage pre-approval. This is determining that how much you can comfortably afford.
Red Deer Consumer Confidence in the housing Market
What is consumer confidence? Well, it is not about your confidence. It is the statistical measurement or an economic indicator the degree of optimism of consumer about their financial capability and overall state of the economy. As for the consumer confidence in Central Alberta this 2019, it will still if not high but stable. This is despite the low consumer confidence rate across Canada, Central Alberta still remain strong.
This being said, learning and researching about consumer confidence in your target area will help you to understand the demands of housing or buying or properties around Red Deer. Also, Alberta’s small business confidence rises faster than the rest cities in Canada. It spiked by 3.9 percentage points to 60.1 in December 2018 compared to November 2018. With this result 2019 is predicted to if not equally as high but much higher.
Median Price House Prices in Red Deer
One of the important points to look at before investing on a property, knowing the median price will help on how much are the price range within a city or county. Median price means the “in the middle” this means exactly half of homes listed are above this price and exactly half are below. The median price in Red Deer is approximately $349,000, which is far much better than rest of the cities in Alberta.Studying the real estate market red deer is a little tricky. You can’t simply determine the price of a property just by simply looking at it. There’s more to property listings that meet the eye. Professionally taken photos could easily deceive some regular buyers.
Truth of the matter is, it’s not solely the sellers and buyers who care, homeowners are also in need of some sort of guarantee that their prized possession will maintain its value. No one could predict what this year has in store, however, we have cited some predictions from real estate market experts on where the industry us headed and how it could impact Canada’s overall housing market in the coming years.
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- Mayor: Tara Veer
- Governing body: Red Deer City Council
- City Manager: Craig Curtis
- MPs: Earl Dreeshen,Blaine Calkins
- MLAs: Barb Miller,Kim Schreiner
- Land: 104.73 km2 (40.44 sq mi)
- Urban: 62.91 km2 (24.29 sq mi)
- Elevation: 855 m (2,805 ft)
- City: 100,418
- Density: 958.8/km2 (2,483/sq mi)
- Urban: 99,718
- Urban density:1,585.2/km2 (4,106/sq mi)
- Municipal census: 99,832
How does Red Deer Real Estate Market compare to the rest of Canada.
Even though Canada’s real estate market experienced a dip the past 2 years, the prices of house in major urbanize regions. As per the most recent Housing Trends and Affordability Report by the Royal Bank of Canada in 2017, it costs about 75-80% of median household income to fully cover how much it costs to own a house.
In hopes of stabilizing the prices, most Provincial Governments issued a 15% tax on housing foreign investments. However, per PricewaterhouseCoopers’ report, industry players and investors are a bit iffy on the said tax reform, stating that curtailing foreign investments would gravely have a long term cooling impact in house prices in all of Canada.
The ever-increasing cost of living left millennial with no choice but to look for alternatives to conventional housing. Back in 2016, it is found that about 47% of adults in Canada’s large cities are said to live with their parents. PricewaterhouseCoopers expect multi-generational and multi-family homes to significantly increase, enforcing larger condominiums to rightfully fit large and growing families, and possibly a step towards urbanization as new and improved public transport projects make commuting easier.
How does the Real Estate Market in Red Deer affect your?
If presently, you own a house, you can be at ease that your investment will continue to hold its value, and even appreciate over time. If you are looking to sell this year, do some in depth research, and perhaps seek the help of real estate professional to evaluate the value of your property. It is advised to not sell above the market price and not gravely below the market value, especially if you are in the rush to sell your house.
If you are an avid buyer who has been on the lookout for house prices to take a dip, you might need to wait longer, since prices are expected to be stable, grow even, this year and the coming years. Governing bodies have put in the effort to somehow slowdown the drastic increase in prices, which helped balance the real estate market in a way.
For more information on Red Deer AB Real Estate Market contact us and we can dive into your local neighbourhood historical and present data.
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- 1 Real Estate Market in Red Deer- What to expect
- 1.1 A closer look at Red Deer Real Estate Market
- 1.1.1 Red Deer Real Estate Market Sources
- 1.1.2 New Mortgage Rules affect the real estate market in Red Deer.
- 1.1.3 Red Deer Consumer Confidence in the housing Market
- 1.1.4 Median Price House Prices in Red Deer
- 1.1.5 How does Red Deer Real Estate Market compare to the rest of Canada.
- 1.1 A closer look at Red Deer Real Estate Market