Interest rates have impacted our market this year.
Inventory levels remain low in Red Deer even though sales are slower in 2023. Inventory was low through 2022 because sales were high but now it’s because fewer homeowners are selling. For the same reason interest rates slow buying down, it also slows selling down.
The number of homes for sale (inventory) in Red Deer was lower in June than in May. I thought we’d see inventory levels begin to increase with sales slower this year but there’s more to consider.
The high-interest rates that are keeping some buyers out of the market are also keeping some sellers sitting tight. Homeowners know that if they sell they also have to buy. And we might not see higher inventory numbers until more low-interest mortgages mature. Inventory levels will also adjust as buyers and sellers get used to the higher rates.
The average sale price of homes in Red Deer has changed this year but not in the typical way.
Overall it looks as though prices are decreasing but they aren’t necessary. More buyers are buying less expensive housing and that affects the overall price average. However, in almost every price range prices have increased. Imagine that all the buyers planning to spend 400k on their next home are now buying in the 300k range.
This will make more sense if you read the monthly average price report.
The Red Deer real estate market is experiencing slower sales this year.
Home sales in 2021 and 2022 were high because buyers knew interest rates were increasing. And sales stayed high through 2022 because nobody knew where the rate increase would stop. Get in before they’re higher.
The number of detached homes sold is 28% lower in May 2023 over May 2022. However, the number of attached homes selling is 27% higher. Because more detached homes sell in Red Deer than attached homes, the overall number of homes sold in May was 10% lower.
Days on market
The lower home-for-sale inventory is lowering the number of days on the market (D.O.M.) that 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 is 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.