The Central Alberta real estate market is expected to grow this year, and Innisfail is no exception.
In a report prepared by Tracey Christensen, president of the Central Alberta Realtors Association Jan. 23, she predicts a nine to 11 per cent increase in sales volume, bringing numbers closer to the 2008 levels of 4,200 units being sold.
Based on MLS listings provided in Christensen's report, last year, 3,006 units were sold, 1,560 of which were in Red Deer. The surrounding communities, Innisfail, Blackfalds, Camrose, Lacombe, Ponoka, Rocky Mountain House, Stettler and Sylvan Lake made up the rest.
While other communities such as Blackfalds saw a 41 per cent increase from 2010, and Ponoka, 49 per cent, Innisfail saw no change in sales between 2010 and 2011, selling once again 77 homes ó the lowest numbers Innisfail has had in the last five years.
The report notes that typically smaller communities are quicker to decline and slower to recover than the city.
"As economic growth takes hold throughout the region, we will begin to see sales and growth in the smaller rural areas as well," the report reads.
Local realtors remain optimistic, agreeing with Christensen that this year should see a spike in sales.
"Homes are more affordable than three years ago and interest rates are at an all-time low," said Tammy Syslak, associate with Royal LePage Weber in Innisfail. "This is a really good time to buy."
She said there's a dramatic swing for the positive with more people prepared to purchase a new home. "We're in an upswing for a positive year," she said, adding that the "trickle down" in sales activity from surrounding communities should be come apparent in the coming months.
Brian Sawyer, broker with ReMax SunCountry Realty is also hopeful for a strong year, adding that housing prices should level out.
"We feel that now that the pricing has been adjusted that's the big thing. Red Deer and that tend to get their pricing down so therefore they had more sales," he said, explaining that price is one of the big things that will stop a place from selling.
The report indicates the average selling price of a house in Red Deer was decreased by 3.76 per cent to $332,500 from $345,545 in 2010. In Innisfail, average selling price increased one per cent to $265,298.
"Pricing has always been a problem and I think the agents here are tired of telling people, ëgeez, we're too high, we missed the market and we have to reduce the price.' But that's how it's been since 2008 so we're hoping we won't have to do that this year. We're hoping for a level out and that's what people are predicting but whether we will see that or not is yet to be seen."
He said the inventory is low, which means with supply and demand, it's a good time to be selling. But he added, the additional spring inventory could drive up competition, bringing in fluctuations for sellers throughout the year.
"My prediction is we will still have ups and downs but as far as levelling off the big gurus are predicting we should see a levelling off, so hopefully they're right which would mean prices won't come down any more, and would level off and I doubt we would see any rise in prices until the following year would be my best bet then." Sawyer agrees with Syslak that 2012 is the year for buyers with low interest rates but also low mortgage packages.
"We've had an unusual January here so far; it's been very active which is great news to see. Hopefully it's a great sign for the year."
