Low inventory and strong demand in Red Deer creates a tight market.

Red Deer’s housing supply is hardly keeping up with the demand as the real estate market inventories remained notably low.

According to Alberta Real Estate Association, the 202 new listings weren't enough to satisfy the thriving demand as 194 properties were sold.

This contributes to a 39% percent drop in the inventory from the same period last year with only 339 properties in the market last month.

With a limited number of houses available and a high demand, there is an impressive sales-to-new-listings ratio of 96 per cent. At the same time, the months of supply dropped even further. By the end of the month, this had squeezed below two months' supply.

“Red Deer is experiencing a shortage of supply, and there is a dire need for more sellers to enter the market,” says Kevin Lapp of Lapp Realty.

Average Home Prices Remain Lower Despite Tight Market

Interestingly enough, despite this significant squeeze on inventory, average home prices over the year-to-date remain more than one per cent lower than the same time last year. This might seem counter-intuitive initially, but the reasoning behind this trend might come down to a simple shift in the composition of sales.

Recent market activity has seen a larger proportion of sales activity composed of lower-priced apartment condominiums. Given this shift towards lower-priced options, this has naturally had a downward effect on average home prices - despite the overall tightness of the market.

Looking Ahead

In this scenario, the low inventory coupled with the high demand makes Red Deer a seller's market.

If you are a prospective seller, our advice to you is to seize this opportunity to get the best possible price for your home.

While the rest of the country reports a slowdown in sales, things are different in Alberta with the migration of people moving provinces in search of more affordable options.

In fact, there’s a rise of 3% in the sales of homes in Red Deer compared to last year.

This only shows that buyers are out there and if there’s the best time to sell your home, it is now. The heightened demand can lead to better offers, especially if you make strategic updates, clean and stage your home.

Buyers, on the other hand, should arm themselves with research before making a move.

While it might take longer than you expect to find the right home in a seller’s market, mostly because of high competition and low inventory, working with experienced professionals will be your best gear.

Seasoned realtors can provide valuable guidance, from understanding the local market trends to developing an attractive offer.

Conclusion

Knowledge is power in the real estate market. Stay updated with current trends and average days in the market. Learn the percentage of sale prices and understand the market's pulse.

Use real estate market updates to your advantage. Be in the know on the local real estate trends so you can make a guided decision before taking on a real estate transaction.

To guide you further in your real estate journey, find a trusted real estate agent to help you better in understanding the behavior of the market and how you can leverage it to your advantage.

At Lapp Realty, we stay committed to our mantra of making your real estate dreams come true and look forward to guiding anyone in need of assistance.

Please feel free to reach out via our social channels and have a great August. Keep an eye on this space for all the latest market updates and insights.

Check out the infographics below for the Central Alberta Market Update for July 2023