The Red Deer Real Estate Market: Many investors rely on real estate market news to decide how much and when is the best time to make a move. The Central Alberta real estate market forecasts stable prices regardless of the expected volatility in oil prices.
New mortgage rules for 2019 are expected to help this year’s sales, despite declining home sales last 2018.
But, how does the real estate market work in Red Deer? Which area should you focus on? We will discuss the important points of the real estate market in Red Deer.
Red Deer Real Estate Market Source
Before you go ahead and make any decision about your investment property, you should know where to find reliable information and whom to consult. Get reliable information about real estate market updates with the most trusted sources, the Canadian Real Estate Association and the Central Alberta Realtors Association.
A lot of real estates professionals are association members and also have updated or active Red Deer real estate listings. They provide news updates about real estate activities. They also have the latest property listing; Don’t forget to limit your search to within Central Alberta.
This way you not only see the real estate market with red deer but also news and updates about properties around red deer which have an impact on home sales. Contact one of our Walz Real Estate Agent team members for more information
New mortgage regulations hit the real estate market in Red Deer.
Understanding how mortgages work in your target area will go a long way in helping you handle your investments. Most of the investors or even ordinary home buyers do not think about this aspect very well which may result in foreclosure.
But what mortgage rules should you keep in mind. Here are the key mortgage rules you should know by heart. If you are looking for the home of your dreams, you should know that there are two types of residential mortgages.
Traditional Mortgage – This means that the down payment should be equal to or greater than 20% of the value of the property. You must also pass a mortgage stress test that exceeds the mortgage contract rate or meets the 5-year benchmark rate from the Bank of Canada.
High Ratio- This means that the down payment is less than 20% of the value of the property plus the mortgage insurance. You must also pass a mortgage stress test that exceeds the mortgage contract rate or meets the 5-year benchmark rate from the Bank of Canada.
Also, keep in mind that mortgage pre-approval is a must if you are buying a property. It’s determining how much you can comfortably spend.
Red deer consumer confidence in the housing market
What is consumer confidence? Well, it’s not about your confidence. It is a statistical measure or an economic indicator of consumers’ degree of optimism about their financial ability and the overall state of the economy. As for consumer confidence in Central Alberta this 2019, it will remain high but not stagnant. This despite low consumer confidence rates across Canada, Central Alberta remains strong.
That being said, learning and researching consumer confidence in your target area will help you understand the demands for housing or purchases or properties around Red Deer. Plus, Alberta’s small business confidence grows faster than other cities in Canada. It increased by 3.9 percentage points to 60.1 in December 2018 as compared to November 2018. 2019 prediction with this result is not the same but much higher.
Median House Price in Red Deer
One of the important points to look for before investing in a property, knowing the average value will give an idea of what the price range is within a city or county. The mean value is “in the middle”. This means that half of the listed homes are above this price and exactly half are below.
The average price for red deer is about $349,000, which is better than most other cities in Alberta. Studying the real estate market red deer is a bit tricky. You cannot determine the value of an asset just by looking at it. There is more to property listings than meets the eye. Professionally taken photos can easily deceive some regular buyers.
The truth of the matter is that not only do sellers and buyers care, homeowners also need some sort of guarantee that their prized possession will retain its value. No one can predict what is in store this year, however, we have cited some predictions from real estate market experts on what direction the industry is headed and how it will shape Canada’s overall housing market in the coming years.
How does the Red Deer real estate market compare to the rest of Canada?
Even though the Canadian real estate market has declined over the past 2 years, home prices have declined in major urbanized areas. According to the recent Housing Trends and Affordability Report by the Royal Bank of Canada in 2017, it costs about 75-80% of the median household income to fully cover the cost of owning a home.
In hopes of stabilizing prices, most provincial governments issued a 15% tax on housing foreign investment. However, industry players and investors are slightly outraged by the said tax reform, as PricewaterhouseCoopers reports, which says reducing foreign investment will have a long-term cooling effect on domestic prices across Canada.
Millennials are left with no option but to look for alternatives to traditional housing with the rising cost of living. Back in 2016, it was found that approximately 47% of adults in Canada’s larger cities live with their parents.
PricewaterhouseCoopers expects a significant increase in multi-generational and multi-family homes, introducing larger condominiums to more accurately fit large and growing families, and possibly a step towards urbanization as new and better Public transport projects make travel easier.
Know The Red Deer Real Estate Market and City services at https://www.reddeer.ca/