Red Deer had its strongest May since 2015 with 197 residential units sold last month, according to statistics from Alberta Real Estate Association.
Most of the gains were due to significant growth in the detached and semi-detached sectors, which have seen sales rise well above long-term averages for the city.
Detached homes accounted for 150 sales in May. A total of 17 semi-detached homes were sold, along with 17 row houses and 13 apartments.
The association said the city has also been generally seeing growth in the new listings coming onto the market as sellers take advantage of tighter market conditions. While the level of new listings did trend down relative to the past few months, it has been enough to support some improvements in inventory levels.
Tighter market conditions continued to drive up prices in the area. Year-to-date, the overall average residential price has increased by nearly 11 per cent to $346,821.
The average detached house price in May was $384,762. Semi-detached homes averaged $276,547. Row housing averaged $229,109, and apartments averaged $154,867.
While the tighter market conditions are likely a factor driving up prices, some of the price gains could be related to shifts in distribution, the association said.
Red Deer’s real estate market had 299 new listings in May, and inventory climbed 636.