The Red Deer real estate market was strong in August.
Inventory levels remain low in Red Deer even though it increased a little in August Inventory was low through 2022 because sales were high but now it’s because fewer homeowners are selling. For the same reason that interest rates slow buying down, it also slows sellers down.
The number of homes for sale (inventory) in Red Deer was higher in August than in was in July. We almost always see sales slow in late summer, and early fall but in August they were higher than a year prior.
We might be seeing more homeowners deciding to list their homes for sale because inventory levels are increasing even as home sales increase. As mortgages mature more people will be alright listing. It wouldn’t be smart to start a new mortgage if your current one is a much lower percentage. But if you’re renewing your mortgage and have to adapt to the higher rates, those homeowner may start listings.
The average sale price of homes in Red Deer has changed this year but not in the typical way.
The overall home price average looks as though prices are decreasing but they aren’t. More buyers are buying less expensive housing and that affects the overall price average. However, in almost every price range prices have increased.
However because fewer detached homes are selling and more homes are selling in the lower price range, the overall average is lower.
For example, if normally 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 only 70 detached homes but higher at $410,000, and 70 attached homes sell higher at $230,000 in a month, the overall average price would be only $320,000. The average price in each segment has increased but with fewer homes selling in the higher-priced segment the overall price average is lower.
The monthly overall home price average jumped by 3.5% in August and that nudged the 12-month running average up 0.3%. However, the current overall running average is still 2% lower than it was in August 2022.
For more price average details read our monthly average price report.
Home sales in Red Deer were very strong in August. 52% more attached homes sold in August 2023 over August 2022 and detached home sales were also up 8%. Both monthly price averages were high enough to also increase the 12-month average.
Homes sales overall in Red Deer are 13% lower than they were this time last year, due in most part to higher interest rates. After July there were 17% lower so we are seeing higher sales. With very low inventory levels it’s easy to imagine that more homes could sell each month if there were more available for sale.
Red Deer home sales overall were up 23% this August over August 2022.
Home sales overall are down only 13% this year over last but they were down 17% after July.
2023 overall home sales are still substantially higher than sales in 2019 and 2020.
Days on market
The lower inventory rates are causing homes to sell more quickly, lowering the number of days on the market (D.O.M.) homes are taking to sell.
Almost all of the information above points toward it being a good time to sell your home if you can and need to. I also think it’s a good time to buy if you’re considering that.
Alberta is seeing more immigration and interprovincial migration because there’s attractive employment here and the cost of living is relatively low. Inventory levels are expected to stay low and that will push prices up.
Check in each month at www.iOnRealEstate.ca for Red Deer and Central Alberta real estate news, stats, and information.