Red Deer’s real estate market remained soft in February.
There were 104 residential sales of all kinds in February, down 40 per cent from 175 sales in February 2022. Through two months, there have been 196 sales, down 34 per cent from the 300 sales to the end of February 2022.
The average sale price is also down — $311,949 compared with $338,269 a year ago.
Sales are down more sharply in the entire central Alberta market, falling 43 per cent to 261 sales from 456 in February 2022. The average sale price is down to $287,000 from $350,976 — a 22 per cent drop. Year-over-year total sales are down 42 per cent to 447 units from 772 through two months a year ago.
In its Red Deer market analysis, Alberta Real Estate Association (AREA) says sales are returning to more typical levels after two years of “robust” sales.
“At the same time there has been a significant pullback in new listings, keeping inventories nearly 40 percent below long-term trends for the month. Lower sales and inventory levels have ensured that the months of supply remain relatively unchanged at three months.
“This is still reflecting far tighter conditions for February than what was seen throughout the 2015-2020 period.”
Despite the balanced market, average sale prices have fallen, driven by rising interest rates, says AREA.
“With higher lending rates driving more people to seek out lower-priced product there has been a higher share of sales occurring for row- and apartment-style product versus the detached and semi-detached homes, which can explain some of the decline in average prices.
“At the same time within the detached sector a larger share of the homes sold are in the lower price ranges this year compared to last year.”
The Red Deer and central Alberta trends are reflected in provincial sales statistics.
February’s 4,563 sales are down 44 per cent from February 2022. Through two months, sales are down 40 per cent to 7,969.
Average sale prices are down 10.6 per cent to $427,694.
“It is unsurprising to see a pullback in sales, given the shift in the lending environment compared to last year,” says AREA. “The market has struggled with supply levels, which ultimately is preventing the market from shifting into more balanced conditions at this time.
“While conditions are not as tight as last year, lower-priced properties are still seeing relatively tight conditions compared to higher-priced homes, which have seen more growth in supply relative to demand.”
February sales were down in many central Alberta communities. (Last year’s sales in brackets)
•Blackfalds — 14 (24)
•Innisfail — 10 (14)
•Lacombe — 14 (36)
•Red Deer County — 106 (132)
•Rocky Mountain House — 3 (15)
• Stettler — 8 (13)
•Sylvan Lake — 32 (42)