Home prices in Red Deer using the monthly average and the 12-month running average
This page is updated each month with a 12-month chart and a 36-month graph so readers see how prices are trending.
Each month I update the the monthly home price average from the homes sold the preceding month. I post the overall average price, combining the sold prices of all homes that month including semi-detached homes, townhomes (townhouses), apartments (condos), and detached homes. And I do the same thing for detached homes separately.
In addition to posting the monthly average, I post the 12-month running average for both overall and detached homes. Each month at the end of the article, I summarize what I think is happening with home prices in the Red Deer real estate market.
Note, that I also track the average home price in other Central Alberta communities, and if you’d like more info. or specific information 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 12-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.
| Overall | ooo | Detached | |||
| Month | Average | 12-month avg. | Average | 12-month avg. | |
| Aug 2022 | $338,850 | $336,747 ⬆︎ | $394,765 | $389,573 ⬆︎ | |
| Sept 2022 | $342,398 | $337,167 ⬆︎ | $408,881 | $392,134⬆︎ | |
| Oct 2022 | $320,941 | $335,725 ⬇︎ | $376,165 | $391,176 ⬇︎ | |
| Nov 2022 | $332,885 | $337,029 ⬆︎ | 385,705 | $393,765 ⬆︎ | |
| Dec 2022 | $301,766 | $333,908 ⬇︎ | $359,519 | $391,742 ⬇︎ | |
| Jan 2023 | $283,526 | $331,407 ⬇︎ | $347,922 | $390,200 ⬇︎ | |
| Feb 2023 | $311,949 | $329,283 ⬇︎ | $378,131 | $389,634 ⬇︎ | |
| Mar 2023 | $333,211 | $329,053 ⬇︎ | $402,240 | $390,338 ⬆︎ | |
| Apr 2023 | $361,296 | $330,150 ⬆︎ | $417,434 | $391,452 ⬆︎ | |
| May 2023 | $328,656 | $328,899 ⬇︎ | $413,892 | $392,934 ⬆︎ | |
| June 2023 | $354,514 | $329,390 ⬆︎ | $416,944 | $393,216 ⬆︎ | |
| July 2023 | $338,026 | $328,967 ⬇︎ | $407,462 | $392,422 ⬇︎ | |
| Aug 2023 | $349,999 | $329,896 ⬆︎ | $426,810 | $395,092 ⬆︎ |
Home prices overall
The monthly overall home price average jumped by 3.5% in August and that nudged the 12-month running average up 0.3%.
The current overall running average is 2% lower than it was in August 2022.
The monthly average can vary substantially depending on whether there were a few higher or lower-priced homes sold that month, so the monthly average doesn’t give an accurate reading of what the market’s doing. That’s why I use a 12-month running average to see what direction prices are trending.
Detached home prices
The monthly detached home price average jumped by 4.7% in August and that nudged the 12-month running average up 0.7%
The current running price average for detached homes is 1.4% higher than it was in August 2022.
The chart below gives readers a look at the 12-month running both overall and for detached homes over the past 36 months so readers have a look at the direction prices are trending.
What’s the Red Deer market doing?
Lately, prices are increasing because the inventory of homes for sale in Red Deer is very low. This past month saw higher price averages both overall and for detached homes and that makes it more interesting to see what happens in September.
Interest rates have increased again since the last report, and that could impact prices but probably only a little.
Migration to Red Deer and a very low vacancy rate could be pushing more people to buy rather than rent. Sales are stronger than expected and they are also contributing to low for-sale inventory.
There’s a good chance we’ll see prices continue to gradually increase until inventory normalizes. Inventory in Red Deer and all Central Alberta communities is in the seller’s market range.
We likely won’t see inventory increase quickly but it will as mortgages mature and everyone becomes more used to the higher interest rates.
Something to consider when comparing home prices
I’ve mentioned before that we’re witnessing an interesting dynamic in the Red Deer market. It looks as though detached home prices are increasing while overall, prices are decreasing. However, it’s important to know what is actually happening. Looking closer we see that fewer detached homes are selling and more people are buying less expensive properties.
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 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 of the higher-priced homes and more of the 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.
Red Deer home prices will likely continue upward
There are a number of variables causing lower inventory and none appear to be easing off in the near future. Even if inventory levels increase a little it won’t make a lot of difference. Because with inventory levels below 2 M.O.I. (months of inventory) almost everywhere in Central Alberta we’ll need many more properties for sale to soften the inventory drought.
Check back each month at iOnRealEstate.ca to see what local Red Deer home prices are doing.
Hosted by Blake King Realtor® and Big Earth Realty. Blake continually monitors the Red Deer and Central Alberta real estate market to track changes and watch trends so he can help his clients make the most informed decisions, buying or selling. If you want to learn more about how local market stats impact your next real estate transaction call or email Blake anytime at (403) 350-7672 or email hello@blakeking.ca
