Inventory’s sharp but sales are slowing and prices are softening
Inventory levels have decreased in Red Deer with many sellers appearing to sit tight until interest rates subside. Coasting into winter though, we are seeing sales slow and prices stop the gradual climb they were on.
The inventory of homes for sale in Red Deer is now down from 3.2 M.O.I. (months of inventory) at the beginning of October to 2.5 M.O.I. now. M.O.I. for attached homes is also still in the seller’s market range and only 3.2 M.O.I. The attached homes look to be selling better than normal due to higher prices on detached homes and interest rates increasing.
We’ve been lucky in Central Alberta with only moderate price increases compared to other parts of the country but they appear to be slowing. With lower-than-normal inventory levels, prices might hold on better than expected. To give readers an idea of how our local prices are relaxing, the 12-month average home price for detached homes decreased by 0.25% in October. The average price for attached homes was down about 0.5% in October.
Detached home sales were down 30% in Sept compared to Sept 2021 but were down only 2% in Oct. Detached home sales have been on a rollercoaster ride the last couple of months but we are seeing more lower sales months than higher ones lately. Attached homes have been selling much higher in 2022 and were up 2.9% in October.
Days on market
At the top of the infographic above you can see that the number of days-on-market increased in each category again this past month. It’s taking a little longer to sell as the market cools.
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