Low inventory is keeping prices steady amidst slower end-of-year sales
Inventory levels remain low in Red Deer with some sellers possibly sitting tight until interest rates subside. Sales are slower than last year but relatively strong compared with years prior to 2021.
The inventory of homes for sale in Red Deer is now down from 2.5 M.O.I. (months of inventory) at the beginning of November to 2.1 M.O.I. now. M.O.I. for attached homes is also still in the seller’s market range at only 3.2 M.O.I. Attached homes are still seeing strong sales and it’s likely because every buyer will qualify for a lower mortgage with rates higher than they were.
We’ve been lucky in Central Alberta with only moderate price increases compared to other parts of the country. However, with much lower-than-normal inventory levels, prices are holding on better than expected. To give readers a quick look at how our local prices are doing, the 12-month average home price for detached homes increased by 0.66% in November while the average price for attached homes increase by 0.38%.
Detached home sales were down 12.8% in November compared with November 2021. It’s important to keep in mind, however, that even though detached home sales are slower than last year, they are much higher than in the years preceding 2021. Attached home sales have been up every month in 2022 and were up 11% in November.
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 to sell as sales slow at the end of the year.
Check in each month at www.iOnRealEstate.ca for Red Deer and Central Alberta real estate news, stats, and information.