Red Deer’s average home price edges upward again in October with higher sales and lower inventory causing it.
It has been a busier year in the Red Deer real estate market and that combined with the lower inventory, has caused the average home price to increase.
I mention each month how I track the monthly price average based on all residential properties sold. But in addition to that, I also post the 4-month and the 12-month running average. If we used the month-to-month average to detect trending it would be difficult because it varies a lot. But taking a look at the 4 and 12-month running average we get a better feel for what’s happening with home prices.
The average price of residential property sold in Red Deer in October 2021 was $338,531. That’s 0.5% higher than September’s average of $336,828 and 3.4% higher than October 2020.
However, looking at a longer average we can get a better idea of whether prices are trending one way or another. Each month I look at the 12-month running average by averaging the last 12 months. This will show us whether prices are increasing, decreasing, or staying flat.
The October 2021 price average contributed to both the 4 and 12-month averages increasing.
Are we seeing home prices trending in any one direction in Red Deer? Yes. November 2020 was the last time we say the 12-month average go down and since then the average increased each month.
Why are prices gradually increasing? There are two reasons. Buying activity has been higher almost every month since COVID-19 reared its head and there have been fewer homes listed for sale than normal. The combination of higher sales and fewer listings – low inventory is pushing prices up.
Will prices continue to increase? It’s hard to say for sure but an increase in lending rates and if more homes hit the market in 2022 we could see price increases slow.