Since COVID started and interest rates decreased Red Deer’s home sales activity increased month after month. June 2021 marked the 13th month in a row with sales outperforming the same month the year prior. However, in July sales numbers dipped below July 2020.
What’s been happening
Red Deer’s home sales dropped when the pandemic began but have since been substantially higher each month until July. Part of the reason home sales following the start of COVID appeared high was because they didn’t have to compete with much. 2020’s sales stats had to only compete with 2019 sales which were the lowest and slowest Alberta has seen in years. (see chart below)
Since 2014 home sales in Central Alberta decrease gradually until shortly after COVID hit in 2020. The uncertainty caused a few slow months but after that sales take off and excelled into 2021. It didn’t take much to outperform sales over the last couple of years but sales in 2021 even outperformed our highest year this decade, 2014. With that said, sales can’t climb forever and this past month in July, home sales for the first time in 13 months were slightly lower than last year.
Where we’re at July 2021
In July 2021 the number of detached homes sold in Red Deer was 4% lower than July 2020. In July 2020 113 detached homes were sold in Red Deer and in July 2021 only 108 were sold.
We should note though, what appeared to be slower sales this July might have been for two reasons. Central Alberta home sales usually peak in May/June but the peak was delayed until July in 2020. With the peak in 2020 being later, and the peak this year being traditionally in April, the month-to-month comparison came off a little skewed. The other reason is likely due to buyer activity normalizing again.
Because of the late peak in 2020 and more normal homes sales expected through 2021, August and September sales might register lower than last year also.