Region's Housing Market will boom in 2008, " Newspaper: Red Deer Express"

Red Deer's real estate market is undervalued compared to other Canadian regions and will continue to boom in 2008, says Randy Weins, the president of the Red Deer & District Real Estate Board.
In a state of the region address yesterday to Red Deer media, Weins said despite the pause during the second half of 2007 from earlier dramatic and record setting levels in the market, the Red Deer region will experience overall gains in 2008 of between 5% to 7%.
And even thought the average price of a single family dwelling in Red Deer in the last quarter of 2007 was $337,000 it is still a bargain when compared to other markets, said Weins.
"I believe we are still undervalued. Based on our economy, and what the province of Alberta has, it is still a bargain," said Weins.
He noted the average price of a single family dwelling in Vancouver is now hovering around $1 million while in Toronto it is about $700.000, and in the $400.000 range in both Calgary and Edmonton.
The average MLS house price in the Red Deer region in December was $258.993. By comparison, the provincial average residential MLS price for the same month was just over $321.000.
Weins told members of the media the slowdown in the market during the second half of 2007, which included dramatically higher inventory levels, was due to a continued slowdown in the oil and gas industry, speculation buying no longer appearing as lucrative, and a steady increase in the number of citizens moving to other markets outside Alberta.
However, while there was a slowdown in home sales in the fourth quarter of 2007 the average and median prices finished just ahead of those for the same period of 2006.
Weins said that althought the market encountered a "restless" fourth quarter in 2007, the Red Deer area still ended up setting another annual record for listings, sales and prices.
"The market sustained a bit of a turndown adjustment, and lived throught it just fine," said Weins, noting inventory levels have now started to move back to a more healthy and balanced state.
Weins said he expects a slight improvement for the Red Deer market in the first quarter of 2008 compared to 2007 fourth quarter results.
"When things turn downward, it shakes people's confidence a bit,' said Weins. "It will take a few months to get things going again."
He predicted the market would start to boom in the third quarter with an improved performance from the oil and gas industry and commercial and industrial projects moving ahead.
"I think this will be the strongest quarter of the year, setting new records in most every range of the housing market," said Weins. "I am expecting average prices will increase by five and six per cent, to set the new records and again beat inflation."
Weins predicted 2008 fourth quarter results will be better than those in 2007, and 2008 will end on an "optimistic note - healthy and strong"