May 2008, Statistic Analysis
The RDDREB (Red Deer Real Estate Board) has released the stats for May. The total listings processed by Red Deer Real Estate Board in May 2008 has increased by 8,40% in comparance with May 2007. Decrease in city residential listings processed by the Board. There were 387 city residential listings processed ( 403 - April 2007). Total Sales by Red Deer Real Estate Board (all property types) were decreased in comparance with May 2007 from 728 to 548 (24.73%). Decrease in total sales (all property types) from January 1 - May 31/07 to January 1-May31/2008 23.87%.
Red Deer
Average Selling price
May April March February January
Apartment units $207,120 $211,293 $221,928 $206,100 $189,983
Half Duplex $268,962 $260,972 $277,960 $248.088 $264,830
Mobile $74,833 $66,260 $184,000 $68,500 $96.333
S. F. House $353,247 $339,156 $361,465 $368.172 $342,746
Townhouse $230,684 $227,493 $234,033 $221,884 $256,491
Rural Residential
Average Selling price
May April March February January January 2007
Apartment units $181,957 $158,000 $188,333 $200,500 $177,450 $152,500
Half Duplex $249,937 $252,293 $258,060 $205,714 $268,700 $221,619
Mobile $94,579 $88,342 $83,947 $93,028 $73,554 $80,835
S. F. House $290,806 $302,109 $300,003 $282,734 $289,631 $255,619
Townhouse $214,050 $226,350 $234,083 $233,988 $205,771 $213,988
Acreage $455,146 $421,906 $520,407 $494,150 $404,729 $514,526
Note: All stats are from the Red Deer Real Estate Board
Housing starts drop sharply
By Harley Richards - Red Deer Advocate - March 11, 2008The first two months of 2008 were probably a good time for tradespeople in Red Deer's residential construction sector to do some travelling.
The latest stats from Canada Mortgage and Housing Corp. suggest there may not have been much to keep them at home.
The national housing agency recorded just 58 housing starts in the city last month: 28 single-detached homes and 30 units in multi-family projects.
By comparison, work was started on 176 homes in Red Deer last February.
These consisted of 105 single-detached houses and 71 multi-family units.
January 2008 was also a quiet month for local builders. There were 32 single-detached and no multi-family starts.
That contrasts sharply with the first month of 2007, when there were 89 single-detached and 122 multi-family construction starts.
Regine Durand, a market analyst with CMHC, said local builders are responding to the surplus of homes. They're waiting to sell their existing inventory before building more.
There were 70 new, unoccupied, single-detached homes in Red Deer in January, she pointed out, well above the seven-year average of 39.
Meanwhile, 491 single-detached homes were under construction, as compared with an average of 418 from 2001-07.
It should take the local market about eight months to absorb the combined total of 561 single-detached homes, said Durand, adding that the 515 multi-family units under construction in Red Deer during January were also well above the city's seven-year average of 418.
Also playing a role is the city's resale market, said Durand. In January, there were about 1,950 homes listed. That translates into an eight-month inventory, about double the average over the previous seven years.
A slowdown in the migration of people into Alberta has taken a bite out of Red Deer's housing market, continued Durand.
And the escalation in house prices - which in 2007 rose 30 per cent in the case of new homes and 33 per cent on the resale market - has deterred many people from buying.
"It really makes it much more difficult for someone to make that jump from renting to buying."
However, Durand cautioned against reading too much into the 2007-2008 comparisons. She pointed out that last year's record numbers make the corresponding figures for 2008 look worse than they are.
"It's going to remain like the fourth or fifth best year on record," she said of CMHC's forecast for 2008.
With a 77 per cent decline, Red Deer's year-over-year drop in housing starts as of the end of February was the greatest among Alberta's seven largest communities.
But several others also experienced sharp downturns.
Grande Prairie was down 75 per cent, the Regional Municipality of Wood Buffalo fell 63 per cent, Medicine Hat declined 29 per cent and the Edmonton census metropolitan area was off 17 per cent.
Lethbridge's housing starts during the first two months of 2008 were up 14 per cent over 2007, and the Calgary census metropolitan area increased four per cent.
Major Red Deer City Projects over the next 10 years
Expansion of Red Deer College
The first phase of a $110 million Building Communities Through Learning complex, representing the largest expansion of Red Deer College since the College began in 1964, has started construction and is expected to be completed in 2008. It comprises of the Centre for Trades and Technology, the Centre for Innovation in Manufacturing, the Centre for Business Enterprise and the Centre for Visual Arts. The second phase will add the Centre for Regional Sport and Fitness and the Centre for Health Education and is expected to be completed by 2010. Future additions could include a new on-campus health clinic and possibly a jointly developed art gallery-museum with the City. Once completed, there will be an increase in student enrolment over the next 5 years from the current 6,500 to 10,000.
12-Storey Office Building Downtown
A $28 million, 12-storey office building called Executive Place is under construction at the corner of Ross St. and 49 Ave. in downtown Red Deer on the site of the former CIBC branch. It may be ready for occupancy by the spring of 2009. The 7,100 sq. ft. main floor will contain office space, the second floor a combination of commercial and office space. Total leaseable space will be about 100,000 sq. ft.
Historic Michener Landmark Restoration
The 93-year-old Michener administration building, located on the east hill of Red Deer and badly burned when struck by lightning in June 2003, will be restored to its historic condition as a result of its purchase by the David Thompson Health Region, a $4.3 million contribution from the province and a $3.6 million fire insurance settlement. The $11.3 million restoration of the four storey building will include a 14,000 square foot addition and verandas that were originally part of the building and will be used for administrative offices for as many as 170 staff. The stately red brick structure was built at the crest of the hill in 1912 overlooking the town of Red Deer in the river valley below. It was used for Alberta's first women's college, then a hospital for World War I soldiers before becoming the cornerstone of the Michener Centre, an institution for the mentally disabled.
East Hill - Timberlands Development Plan
Careful planning should result in balanced growth between residential, commercial and natural areas outlined in the East Hill Area Structure Plan for the east side of Red Deer. A 143-acre town centre commercial area featuring pedestrian-friendly shopping, two high schools, a major recreational centre, residential development and preservation of natural areas are all included in the 20-25 year plan. Most of the area was annexed from the County in 2005. The first phase is the Timberlands development around the intersection of 30 Ave. and 67 St. expected to start construction in 2008.
Future Ring Road Includes New River Bridge
As 20th Avenue develops as part of the East Hill Structure Plan over the next 10 to 20 years, it will eventually become an expressway ring road connecting Highway 2 on the west, Highway 11A in the north (with a new bridge across the river), and McKenzie Road on the south. The $50 million Northlands Drive river bridge and road extension is expected to be built within the next 5 years.
20-Year Plan for Waskasoo Park Renewal
A concept design for the expansion of city hall is currently underway to address the need for a larger facility. A few departments have been forced to move to leased space downtown during the past year. Engineers believe 2 storeys could be added to the building. Other options include expanding into the park area or into the RCMP building across the street once a new police building is completed. Council had approved $31 million in the 2007 capital budget for the project but due to the many other projects currently under way, the project has been postponed for a couple of years.
Arts-Heritage-History Centre
Put on the back burner for now, the most ambitious and imaginative future project is a proposed $46 million arts-heritage-history centre which could include a new museum, archives, art gallery, classrooms, display area and other features. Red Deer Public Library and Red Deer College are considering involvement. In the short term, a stand-alone archives building may be constructed to meet the immediate need of a climate-controlled facility. City council will discuss the matter at a later date. Future possibilities include a facility in the old RCMP building, in Riverlands or near the current museum.
City Hall Expansion
A concept design for the expansion of city hall is currently underway to address the need for a larger facility. A few departments have been forced to move to leased space downtown during the past year. Engineers believe 2 storeys could be added to the building. Other options include expanding into the park area or into the RCMP building across the street once a new police building is completed. Council had approved $31 million in the 2007 capital budget for the project but due to the many other projects currently under way, the project has been postponed for a couple of years.
New Police Building for 2009
Construction of a $23 million RCMP building, to be located on 45 St. near 51 Ave., is expected to start in the spring of 2008 and be open in the fall of 2009. The new facility will be close to major traffic arteries, the fire hall and downtown's party strip. It will replace the aging and overcrowded detachment across from the Red Deer Public Library that was built in 1967. A $8 million satellite police station is being added to the fire hall on 67 St.
Housing starts expected to drop
By Advocate staff - February 09, 2008
The number of new housing construction projects in Red Deer is expected to drop 15 per cent this year from 2007.
The forecasted decline mirrors the situation throughout Alberta, where the Canada Mortgage and Housing Corp. predicts an 18 per cent decrease.
Builders in Alberta are contending with higher inventories of new homes and strong competition from the sale of existing homes.
Sale of existing houses in Red Deer is expected to decline two-and-a-half per cent in 2008, compared with a six per cent provincial decline.
But prices are forecasted to rise five per cent, to an average price of $285,000.
The housing agency still forecasts 900 houses and 425 units in multi-family dwellings will be started in Red Deer during 2008. That is down from 974 houses and 584 units in 2007.
Edmonton is forecasted to have the highest drop in residential starts at 21 per cent, followed by Calgary at 18.5 per cent. Wood Buffalo (For McMurray area) is holding steady, with a one per cent increase forecasted.
Urban housing starts across the province totalled 38,478 in 2007, down six per cent from 2006.
Nationally, the housing agency predicts a seven per cent decrease in housing starts for 2008, and a four per cent decrease in the sale of existing homes.
Red Deer Advocate
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