Photo by JEFF STOKOE/Advocate staff 

Real estate —— Paul has story—— 

An abundance of for sale signs along Lancaster Drive in Red Deer indicates there are a number of real estate options in the south east of the City of Red Deer.

Red Deer real estate sales slow in July

153 units sold in Red Deer last month

The real estate market in Red Deer slowed in the month of July.

Following several months of exceptionally strong levels, sales activity in the city trended slightly downward last month. There were 153 sales, down about five per cent year over year, but in line with long-term averages.

Lindsay Olver, president of the Central Alberta Realtors Association, said there are a few reasons that likely contributed to the slow down.

First, with a new nationwide mortgage stress-test coming online in June, the impacts are starting to be felt. She added that in Alberta in particular, with the easing of most COVID-19 restrictions as of July 1, buying a house might have slipped down the priority list for some people.

“We’ve definitely noticed a bit of a slow down in July,” said Olver, who is a realtor with Coldwell Banker Ontrack Realty.

“July 1, when everything went back to normal we noticed people weren’t looking at houses as much. It could be a summer thing too. I think in September we will be able to know more about how things are going, once people are used to having that stress test.”

Starting on June 1, Canadian homebuyers began to face a tougher “stress test” to buy a home.

The bank now must use the higher interest rate of either 5.25 per cent or the interest rate you negotiate with your lender plus two per cent. The federal government originally introduced the stress test in 2019.

The slow down in July comes after record months early this year, including in June when 204 units were sold. There have been 1,196 units sold year to date, up 79 per cent year over year.

The total residential average price also continues to rise – sitting at $349,760 – up 10.4 per cent year over year. The average price of detached, semi-detached and apartments also went up, while the average row home price is down 4.4 per cent.