2012 Forecast for Residential Real Estate in Central Alberta Steady Growth and Stable Pricing

The Central Alberta Real Estate MLS® market has solid momentum entering the new year of 2012. Despite the continued uncertainty in global markets, local consumer confidence is being boosted by the growing strength of the energy industry and reports that Alberta will remain a leader of economic growth in Canada. We will continue to see increasing employment opportunities and the resulting migration. This, along with the stimulative effect of historically low interest rates, will continue to support housing demand.

With such strong economic fundamentals I expect to see a more active marketplace occurring throughout 2012. We will see the total number of Residential Sales through our Associations Multiple Listing Service® continue to grow and exceed the 5-year average of 3949 units. I predict an increase of 9-11% in sales volume for Central Alberta, bringing us closer to the 2008 levels of 4200 units being sold.

The rise in sales and decreasing inventory levels should bring absorption rates, days on market, and selling to list price ratios to a level more consistent of a balanced market.

Despite the decreasing inventory levels and increasing demand, sellers should expect to see only modest rise of 2-3% in home prices. The past recession remains strong in the memory of the buyer and they continue to be cautious with spending and allowable debt levels. For these reasons sellers must continue to price their properties conservatively and competitively in order to sell.

To summarize, 2012 will be a year of continued increases in sales. The growing confidence in our local economy will be demonstrated by price stabilization and the beginnings of upward movement in selling prices.

The Central Alberta REALTORS® Association is an MLS® listing co-operative, representing more than 640 REALTORS® located in Red Deer and throughout Central Alberta. Details and photos of all Central Alberta REALTORS® Association listings can be found on the national public web sites www.carassociation.ca, www.REALTOR.ca (residential properties) and ICX.CA (commercial and investment properties).

For more information, please contact:
Patrick Galesloot, President 403-346-0021
Nancy Mackie, Executive Officer 403-343-0881

MLS® STATISTICAL NEWS RELEASE

Starting in January 2009, the Central Alberta REALTORS® Association Real Estate Board Co-op Ltd. started issuing monthly News Releases again, and will be posted on our website.

	2012 Forecast for Residential Real Estate 2012 Forecast		Updated Review of 2011 Updated Review of 2011
	Quiet December for resale housing market Dec 2011 Stats		Home sales soften in November Nov 2011 Stats
	Real Estate on an incline for 2011 April 2011 News Release		Home sales rise in March March 2011 News Release
	Real Estate Returning To A Balanced Market For 2011 Quarterly Press Release		Sales activity increases in January January 2011 News Release
	Archived News News Associated with 2010 - 2007

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