The overall home price average and detached home prices average both decreased in January 2023 but February has faired better.
A couple of months ago I changed the chart below to a 36 month so everyone can see where the Red Deer home price average was and what it’s doing long term. Our local market will probably see some changes in 2023 and it will be interesting to watch.
You can see from the chart below that the most recent numbers have dipped a bit. Home sales are also down over the last few months but inventory levels have remained low.
The table below tracks the average detached home price and the average home prices overall in Red Deer. It includes both the month-to-month average and the 12-month running average both overall and detached homes. You’ll see from month to month, the average price is all over the place. But the 12-month running average gives you a look at how prices are trending. The chart above uses the 12-month running average data but goes back 36 months. Looking back 36 months is interesting. And because the table below goes back 13 months, everyone can compare the most recent average to the same month a year earlier.
Overall home prices
We saw the monthly price average drop enough in December and January to make a difference but there’s been some correction recently. Higher interest rates will always slow sales and that’s the case right now in Central Alberta. Normally slower sales will push prices down but in Central Alberta right now inventory is very low and that’s helping steady them.
| Overall | ooo | Detached | |||
| Month | Average | 12-month avg. | Average | 12-month avg. | |
| Jan 2022 | $313,546 | $335,389 ⬇︎ | $366,410 | $378,197 ⬇︎ | |
| Feb 2022 | $337,430 | $334,116 ⬇︎ | $384,932 | $377,388 ⬇︎ | |
| Mar 2022 | $335,975 | $334,728 ⬆︎ | $393,789 | $378,929 ⬆︎ | |
| Apr 2022 | $348,134 | $335,163 ⬆︎ | $404,061 | $381,081 ⬆︎ | |
| May 2022 | $343,666 | $334,903 ⬇︎ | $396,107 | $381,967 ⬆︎ | |
| June 2022 | $348,628 | $336,720 ⬆︎ | $413,574 | $385,105 ⬆︎ | |
| July 2022 | $343,101 | $336,165 ⬇︎ | $416,991 | $387,061 ⬆︎ | |
| Aug 2022 | $338,850 | $336,747 ⬆︎ | $394,765 | $389,573 ⬆︎ | |
| Sept 2022 | $342,398 | $337,167 ⬆︎ | $408,881 | $392,134⬆︎ | |
| Oct 2022 | $320,941 | $335,725 ⬇︎ | $376,165 | $391,176 ⬇︎ | |
| Nov 2022 | $332,885 | $337,029 ⬆︎ | 385,705 | $393,765 ⬆︎ | |
| Dec 2022 | $301,766 | $333,908 ⬇︎ | $359,519 | $391,742 ⬇︎ | |
| Jan 2023 | $283,526 | $331,407 ⬇︎ | $347,922 | $390,200 ⬇︎ | |
| Feb 2023 | $311,949 | $329,283 ⬇︎ | $378,131 | $389,634 ⬇︎ | |
| down 0.6% | down 0.1% |
In January 2023 the monthly overall price average dropped below $300,000 for the first time in over 2 years and that was following another low price average in December. When that happens it’s hard not to worry but in February prices have bounced up almost $20,000.
The 12-month running average is less volatile than the monthly average because it uses more info over a longer period of time. The lower monthly averages, however, have pushed the 12-month average down for 3 months in a row.
If homes for sale inventory remains low and it likely will, home prices in Red Deer and Central Alberta should fair pretty well overall in 2023.
Detached home prices
The detached home monthly price average appeared to be following the same path as prices overall but in February it’s up.
The December 2022 and January 2023 monthly price averages for detached homes dipped lower than any other month in 2022 but Feb has bounced back a little.
The monthly price average for detached homes in Red Deer was $378,131 and it’s likely due to even low inventory levels now compared to earlier in the year. The higher detached home prices in 2022 are keeping the 12-month running average up but we’ll see what happens over the next few months.
Price changes affect buyers and sellers differently
As a Realtor, it’s hard to hope one way or another with home prices because whatever direction it takes it hurts one group and helps the other.
If a person is planning to buy soon lower prices is positive but the higher prices last year gave homeowners confidence after a long flat-priced decade. It’ll be sad if we lose ground in 2023, but only if you are planning to sell.
Check back each month at iOnRealEstate.ca to see where local real estate prices go.
Hosted by Blake King Realtor® and Big Earth Realty. Blake continually monitors the Red Deer and Central Alberta real estate market to track changes and watch trends so he can help his clients make the most informed decisions, buying or selling. If you want to learn more about how local market stats impact your next real estate transaction call or email Blake anytime at (403) 350-7672 or hello@blakeking.ca