Apartment sales in August shot up 138 per cent compared to the same month in 2021, according to Alberta Real Estate Association.
The significant year-over-year apartment condominium sales rose nearly enough to offset the declines occurring in the detached and semi-detached sector.
Larrissa Kalyn, chair of the Central Alberta Realtors Association, said last year during the pandemic apartment sales fell.
“People were looking for that detached, where they had their own yard, their own space,” Kalyn said.
She said now with the current economy and interest rates, people are coming back to apartment-style living.
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Growth in home sales for Red Deer surpasses all Alberta cities in July
Total residential sales last month in Red Deer dropped three per cent compared to the same month in 2021, but most cities in Alberta saw an even bigger decline.
Lethbridge had the largest drop in sales falling 24 per cent, followed by a 16 per cent drop in Fort McMurray, an eight per cent drop in Medicine Hat, and a six per cent drop in Grande Prairie. Calgary sales held steady. Statistics were not available for Edmonton.
As a province, sales dropped nine per cent compared to August 2021, and across Canada, sales fell 24.7 per cent.
“August tends to be a quieter time. People are finishing up summer and are getting ready to get their kids back to school. It usually starts to pick up in September,” Kalyn said.
Despite some of the recent shifts over the past few months, year-to-date sales activity reached 1,517 units, a 12 percent gain compared to last year in Red Deer. Sales across the province increased seven per cent.
She said the hike in interest rates have had a dramatic impact on the market with another increase expected. She advised potential buyers to get pre-approved for mortgages to lock in before rates go up.
“We are seeing less properties that are coming on the market so there aren’t as many options for the consumer as there was historically.”
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The average residential sale price in the city was $338,850, up three per cent from August 2021. The average price for detached homes was up nine per cent to $394,765, the average semi-detached price fell three per cent to $297,018, row housing dropped nine per cent to $208,329, and apartments prices increased 15 per cent to $193,655.
For more details visit www.albertarealtor.ca/page/alberta-statistics.
szielinski@reddeeradvocate.com
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