And, let’s take a look at how prices have changed over the last few years.
Red Deer home prices increased again in December and that caused the 12-month running average to increase again. The 12-month running average has now increased each month for 16 months straight.
Using each month’s average to determine what home prices are doing is deceiving because it can be skewed with only a couple of higher-priced homes selling. In addition to posting each month’s average, I post the 12-running to track prices trending.
At the end of 2021, the 12-month running average is $337,622 but that doesn’t mean much unless we compare it to preceding years.
The average price increased month after month this year but in the years preceding we didn’t see much movement. To give a better idea of what happened this year let’s have a look at the last couple of years.
At the end of 2018, the 12-month running average was $311,348. The year after that the 12-month average dipped a bit and ended the year at $310,424 and in 2020 average price ended the year at $312,200. You can see that over those three years prices remained pretty much the same.
With the 12-month average price ending the year at $337,622 in Red Deer, we see an increase of 8.4% since 2018 and 8.1% since last December.
It’s good to put price increase in perspective for two reasons. One, so buyers and sellers can see how things are changing and also to curb false expectations. For example, hearing that prices have increased some sellers are imagining a much greater increase than it’s really been.