It was an interesting year in real estate with high sales, low inventory, and firm prices.
Inventory levels remain low in Red Deer as December home sales normalize. We’ve compared the 2022 Red Deer real estate market a lot to 2021 but it’s an unfair comparison. 2021 sales were much higher than normal, and with lower-than-normal inventory prices increase more than they have in a decade.
The inventory of homes for sale in Red Deer stayed very low through December but it climbed fast in January 2023. At the end of December inventory was only 2.4 months but already now, mid-January M.O.I. (months of inventory) is 3.2.
I predict we will see inventory levels climb quickly at the start of 2023. With this happening, if you are planning to sell in 2023 I wouldn’t wait.
Many sellers aim for the spring market to sell their home because that is when more homes sell. It is true that more homes sell in the spring market but it’s partly due to more houses being listed then. If buyers are searching why not take advantage of less competition before the market floods in spring?
Home prices have done reasonably well in 2022 but in December the average dipped. The monthly price average dropped by 5.3% in December and it was enough to impact the 12-month average home price for detached homes negatively by 0.6%.
It’s important to understand that December sales are fewer and in turn, fewer higher-end homes enter the equation. Therefore, December isn’t a good month to use as a price gauge.
We won’t know how home prices are trending in Red Deer and Central Alberta until a few months in.
Every year December has the lowest number of homes sold in Red Deer. And detached home sales were down 50% this December over last. However, December home sales this year were more in line with the norm. December home sales in 2021 were much higher than normal.
Days on market
At the top of the infographic above you can see that the number of days-on-market increased in each category again this past month. It’s taking a little longer and again, because December home sales are naturally slower, D.O.M. (days on market) stats will increase.
Check-in each month at www.iOnRealEstate.ca for Red Deer and Central Alberta real estate news, stats, and information.