Red Deer home price average dipped in January but is it significant enough to be concerned about?
I’m going to simplify this post each month so it’s easier to compare and evaluate. I’ve mentioned in probably each one of my average price posts that we have to look a little deeper than just what the price average each month is if we want to see where our local market is pointed.
Each month I post the monthly average for all homes sold in Red Deer and the 4-month and 12-month running averages. The monthly average can be skewed if only a few really low-priced homes sell and especially if a few very high-priced homes sell. So, to see the direction our market is heading we need to use more information.
This month’s home price average was much lower than it’s been and I noticed in my weekly reports more homes selling in the 200-300k range rather than the 300-400k price range.
Does the lower price average in January indicate prices are decreasing?
No, it’s too early to tell. However, it was a considerable dip and it was enough ever to impact the 4 and 12-month average. You’ll see above how the January 2022 average came in quite a bit lower than we’ve seen this past year. They go up and down a bit from month to month but in January it was a substantial dip.
We haven’t seen the 4-month average dip and especially not the 12-month running average for a while. But yes, January’s low average brought both the 4-month and 12-month averages down too.
To track the direction our market is going I also chart the 12-month running average. If we charted the monthly average it would look erratic. Charting the 12-month averages better demonstrates if a trend is occurring.