Red Deer home prices

Red Deer home prices

Home prices in Red Deer using the monthly average and the 6-month running average

This page is updated each month with a 13-month table and a 36-month graph so readers can see how prices are trending.

Each month I update the monthly home price average from the homes sold in the previous month. I post the overall average sale price of homes in Red Deer, averaging the sold price of all homes the previous month including semi-detached homes, townhomes (townhouses), apartments (condos), and detached homes. And I do the same thing to track detached home prices in Red Deer.

In addition to posting the monthly average, I post the 6-month running average overall and for detached homes. At the end of the article, I summarize what I think is happening with the market and home prices in the Red Deer real estate market.

Note: I also track average home prices in other Central Alberta communities, and if you’d like more of this type of info or other local real estate news and stats please call or text (403) 350-7672 anytime, or email hello@blakeking.ca

The table below tracks the price average on detached homes and homes overall in Red Deer. It includes both the month-to-month average and the 6-month running average for both. And, the table below goes back 13 months so you can compare the most recent average to the price average of the same month a year earlier.

OveralloooDetached
MonthAverage6-month avg.Average6-month avg.
Feb 2023$311,949$315,557 ⬇︎$378,131$376,054 ⬇︎
Mar 2023$333,211$314,095 ⬇︎$402,240$374,947 ⬇︎
Apr 2023$361,296$320,820 ⬆︎$417,434$381,825 ⬆︎
May 2023$328,656$320,116 ⬇︎$413,892$386,523 ⬆︎
June 2023$355,669$329,100 ⬆︎$416,944$396,094 ⬆︎
July 2023$338,026$338,135 ⬆︎$407,462$406,017 ⬆︎
Aug 2023$349,999$344,476 ⬆︎$426,810$414,130 ⬆︎
Sept 2023$362,642$349,381 ⬆︎$423,798$417,723 ⬆︎
Oct 2023$373,833$351,470 ⬆︎$437,079$420,998 ⬆︎
Nov 2023$338,206$353063 ⬆︎$407,722$419,969 ⬇︎
Dec 2023$325,802$348,085 ⬇︎$395,823$416,449 ⬇︎
Jan 2024$349,216$349,950 ⬆︎$411,907$417,190 ⬆︎
Feb 2024$348,302$348,302 ⬇︎$408,075$414,067 ⬇︎

Home prices overall in Red Deer

Month to month: The monthly home price average overall in Red Deer decreased by 2.6% in February and it was enough to bump the 6-month running average down 0.5%.

The monthly average can vary substantially depending on whether a few higher or lower-priced homes sold that month. Given this, the monthly average gives a less accurate look at the market. That’s why we look at the 6-month running average to get a more accurate read on what direction the market is trending.

In January the 6-month running price average increased a little but this month it decreased. This doesn’t point toward an upward or downward trend, more data is required to assess a trend for 2024.

Year over year: This February’s monthly overall price average is 11.6% higher than February 2023. The current 6-month overall running average is 10.4% higher than February last year.

When examining the monthly average, it’s crucial to acknowledge that the average sale price tends to decrease at the end of each year and subsequently rise during the spring. This explains the observed dip in the 36-month chart during that seasonal period annually. Furthermore, it’s worth noting that this year could deviate from the established pattern, as elaborated in the chart below.

Detached home prices in Red Deer

Month to month: The monthly detached-home price average in Red Deer decreased 0.9% in February after a 4% increase in January. The 4% jump was enough to move the 6-month running average down 0.8% after a 0.2% increase in January.

Year over year: This month, the monthly detached home price average is 7.9% higher than last year. The current 6-month overall running average is 10% higher than last year.

The chart below gives readers a look at the 6-month running average both overall and for detached homes over the past 36 months. This gives a clear look at where home prices were and the direction they’re taking in Red Deer and Central Alberta.

What’s the Red Deer market doing?

Inventory of homes for sale in Red Deer decreased in February in all but one of the Central Alberta towns we track each month at iOnRealEtate.ca. The 1 community where inventory increased is a small sample and it can be skewed with just a few listings.

It’s interesting how homes for sale inventory decreased in February and so did prices. It’s because the impact on price is delayed a little from inventory. One affects the other so the price decrease in Feb. could be applied to the slightly higher inventory in January. With inventory lower at the beginning of March lets see what happens with prices next month.

The 36-month chart above hints at a changing market over the last 8 months. Over the last couple of years, we’ve seen prices decrease gradually starting in June but since November 2022 prices have increased almost continually. They dipped in December but January showed some noticeably higher prices. We might not see the dip this year.

Something to consider when comparing home prices

I’ve kept the paragraphs below because I think we’ll continue to see the sale of more affordable homes as time moves on. And it’s part of the reason the overall price average was lower recently.

Since the end of 2022, we’ve witnessed an interesting dynamic in the Red Deer market. It looks as though detached home prices are increasing while overall, prices look to be decreasing. It’s important to know what’s happening. We are seeing fewer detached homes selling and higher sales amongst more affordable attached homes.

If we look at the average price in each property segment we’d see prices gradually increasing in each segment. However because fewer detached homes are selling and more lower-priced homes are selling, the overall price average is lower.

For example, if 100 detached homes sell each month at an average price of $400,000, and 40 detached homes sell at an average price of $220,000, the overall average price that month would be $348,571.

But if you up the average sale price in both segments and sell fewer higher-priced homes and more lower-priced homes the overall price average could be lower. Imagine 70 detached homes selling at a higher average price of $410,000, and 70 attached homes also sold higher at $230,000, the overall average price would only be $320,000, lower, even after both averages increased.

Check back each month at iOnRealEstate.ca to see what Red Deer home prices are doing.

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Blake King manages iOnRealEstate.ca, catering to Central Albertans eager to stay informed about the local real estate market. Access to more information enhances decision-making, and when dealing with an asset as significant as your home, it becomes crucial to strive for the best possible decisions! Feel free to call Blake King if you have any questions (403) 350-7672.