Crashing Market ARE We Down and Out?

Jim McLeod May 9, 2016

Market Update April 2016

As you can see from my market graph April saw our Red Deer market continue on a downward slope with the sales off almost 16% from last year. In 2015 we had 183 sales in Red Deer compared to 154 this year. The homes on the market increased from 554 in 2015 to 694 in 2016. That is a whopping increase of 25%.

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So where is the market going based on the first third of 2016? As a buyer or seller what is your best move? It is my opinion that our market inventory will continue to increase over the next few months and sales will continue to be off of last year’s sales by about 15% to 20%. As a seller you would be well advised to be increasingly educated to the market almost on a monthly basis as our market continues this adjustment. Pricing will be important, but just as important will be how you market your home. No longer putting a sign up, putting on MLS and then hoping it sells will work. As a seller you must have your home marketed direct to the buyer and you need an agent that knows how to do this. I have a seven point digital property marketing plan proven to work. As a seller you need to realize that buyers have changed the way they search for homes, and your agent also needs to change the way they market your home. Old school does not work any more.

As a buyer what should you be doing in this market? Today as a buyer you have an extensive amount of homes to look at and you therefore need to assess your needs in order to be selective. You must seek a mortgage broker for preapproval for your magic number. Now you need to find an agent that will educate you and assist you in the process: from starting to look right thru moving in. Every buyer has different things that are important to them and your agent should be effectively communicating with you to find out and understand what those things are. Remember in this market, with sales down and agents only getting paid if they sell a home, you need to find an agent that you feel comfortable working with and who will offer their opinion – and also tell you “the why of their opinion”. As an agent my opinion is black or white and you may not always agree with what I say but once I explain “why” you hopefully will understand the benefit to working with me as your buyer’s representative. Remember, if you are not educated to the market you should not buy – as you may not understand value, remembering value is not always reflected in the price.

If you are looking to sell and want what I believe is a great digital property marketing plan, or you are looking to buy and need someone who will offer a sound opinion give me a call today at 403-309-5000 and I would be happy to assist.

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