Note: This average price report, published July 11th, 2021, and the prior to it (June 14th, 2021) used stats from all real estate sales in Red Deer for those two months, not only “Residential” as I usually do. Sorry for the mix-up and >> CLICK HERE << for revised stats consistent with our normal monthly average price report.
The 4 and 12-month home price average has been gradually climbing since December last year but in June the averages stalled. This doesn’t mean the upward trend is over but might indicate prices won’t advance upward too much.
In any real estate market, the monthly home price average is up and down and that’s why we can’t put much weight on it. Depending on if more higher-priced homes sell or more lower-priced homes the monthly average isn’t a good indicator of what home prices are doing. But if we watch longer-term averages we can actually notice a trend.
Each month I post the monthly detached home price based on homes sold in Red Deer and, in addition to that, I calculate the 4-month and 12-month running average. For the past 6-7 months the 4 and the 12-month running average have increased showing a trend upward. If a 4 and 12- month average is gradually increasing it definitely represents the direction the market is taking.
However, the May and June monthly average price both decreased and it was enough to impact both the 4 and 12-month average.
Will home prices decrease now that the 4 and 12-month average has decreased? No, not unless the monthly average continues to go lower. After everything that’s happened in our real estate market over the last year or so it will be very interesting to continue watching what direction our local home price average takes through the rest of 2021.