In April, the Red Deer real estate market saw a slight slowdown in sales compared to last year's high levels, due to a decrease in the detached sector. Yet, it's important to note that sales are still significantly higher than long-term trends and pre-pandemic levels.  

The limited availability of detached homes has led to a sales-to-new-listings ratio of over 100%, causing inventories to drop to their lowest levels since 2007. As a result, the months of supply have fallen below two months, indicating a tight market.  

With today’s real estate market conditions in Central Alberta, is it the best time to sell?

Is it better to sell now?  

Red Deer's inventory remains low, but due to this low inventory, the demand is approximately where it should be with a 2-month inventory. Ideally, a 3-month inventory would be better as it would provide buyers with more options to choose from.  

When inventory levels are low, homes tend to sell more quickly, and prices may rise due to the imbalance between supply and demand.  

With these inventory levels, there are fewer homes for sale than buyers looking for properties. If you want to sell your home, you better act now. This situation works in your favour, as your home will stand out among the limited options available. As a result, you're more likely to receive multiple offers and potentially sell your home at a higher price.  

Moreover, due to the low inventory, the number of offers on recently sold homes has been on the rise. This trend indicates that buyers are actively searching for properties and are willing to compete for the best homes in the market. If you decide to sell your house now, you might enjoy this increased demand and receive more attractive offers.  

Also, most homeowners in Central Alberta have seen a significant increase in their home's equity over the past few years.  

You can use this growth in equity to fund your next move, whether it's upsizing to a larger home, downsizing to a smaller one, or relocating to a new area.  

By selling your house now, you can take advantage of this equity and make your next move more financially feasible.  

Prices are stabilizing  

Although the number of sales has dropped, prices are on an upward trend, mainly due to the low number of listings available. The low demand combined with a low supply could help sustain a balanced market in Red Deer.  

If this trend continues, home prices may experience even more upward pressure. Already, average and median home prices have been on the rise compared to earlier this year. Yet, on a year-to-date basis, total residential prices remain below last year's levels.  

Interestingly, this decline can be attributed to a shift in sales composition, as higher-priced detached homes now make up a smaller share of total residential sales. In fact, detached home prices have seen a year-to-date increase of just over one percent.  

These market conditions present unique opportunities to you. 

With the current tight market, it's crucial to act decisively.  

If you're considering selling your house in Central Alberta, it's essential to speak with a local real estate expert who can provide personalized advice based on your unique situation.  

They can help you navigate the current market conditions and determine if now is the right time for you to sell your home.  

Don't miss out on the potential benefits of selling your house in today's market. Reach out to Lapp Realty real estate experts to discuss your options and make an informed decision about your next move. 

Central Alberta Market Update