Nearing the end of the year 2025, home prices in Red Deer will have risen by over 8% the past 12 months. This follows a strong seller’s market for detached homes, which began in March 2020, with inventory hitting its lowest point in April-May, 2023, but only increasing from then until now by 0.7 of a month.

Detached home sales numbers peaked in April 2021 and have gradually slowed since. In 2021, 8 months of the year had detached home sales higher than 100 homes. In 2022, 7 months saw home sales higher than 100. And in 2023, 6 months were higher than 100, and in 2024, there were only 5 months with sales over 100 homes per month. This year, detached home sales will end the year higher than last year, but it might only be because inventory levels were higher, so there were more homes for buyers to buy. , along with the decrease in available listings. Experts believe that if more homes were on the market, sales could have continued to increase each year.

With the recent half-percentage interest rate decrease, demand may grow even more, potentially worsening the inventory shortage. Looking ahead, forecasts for Alberta—and especially for Red Deer and Central Alberta—suggest that home prices may keep rising as inventory stays low. This would likely keep the market competitive for buyers well into the foreseeable future.

To address the inventory challenges, I’ve started a program to find homes for sale that aren’t listed on MLS or Realtor.ca. Many sellers are hesitant to list until they find a home to buy, so this program helps bridge that gap. By doing this, we’ve had success connecting the dots for both buyers and sellers in this tight market. If you know anyone planning to buy or sell but who’s hesitant because of the current market, have them call me at 403-350-7672 or fill in the form below.