About 7-8 weeks ago the Red Deer market was a different place.

The Red Deer real estate market had higher sales than normal, inventory was super low, and prices were continuing to edge upward. We didn’t know when things would normalize but we knew that higher interest rates would have some impact.

Interest rates began their climb in March and they’re poised to climb higher. Home sales had been higher than average for a number of months by this time and inventory was lower than ever. In some Central Ab communities there was only 1-1.2 months of inventory. 

It was very competitive with buyers competing against each other to get the best priced homes, because so few were available for sale. 

Since then the Red Deer real estate market has shifted gears somewhat.

Likely due to both interest rates climbing and the time of year we are now seeing inventory levels normalize. Sales are still a little higher than normal and I think it’s because a lot of buyers intent to buy before interest rates climb higher. 

The summer real estate market is usually a bit slower than the spring market. Home prices are still increasing gradually but they might slow a bit now.

Higher homes-for-sale inventory is a good thing. Not as much for sellers but it’s more realistic and lessens the chance of competing offers that can sometimes push a home’s price higher than it actually should be.

Home prices in Central Alberta climbed more than normal this past year but we should see them normalize more now. We might see higher than normal sales for a few months considering there are more homes available for sale. And there are still a number of buyers qualifying before interest rates increase more. 

It will be interesting to see how our market adjusts over the next couple of months, watch it happen at www.iOnRealEstate.ca.