Low interest rates and rising employment has propelled Red Deer house sales to their highest level in seven years, according to the Alberta Real Estate Association’s June statement.
“Sales in the city have reached levels not seen since 2014,” states the Red Deer market trend summary for June, issued by the Alberta Real Estate Association.
House buyers had slightly more choices in June, leading to 204 units being sold last month — a 68.6 per cent increase from the same time last year. So far, 1,039 units were sold in 2021 — a nine per cent increase from the first six months of 2020.
Statistics from the Central Alberta Real Estate Association show houses are selling faster this spring and summer than anytime in the past five years. The average house that sold in June was on the market for 75 days, compared to 103 days in June 2020 and 86 days in June 2019.
“While low lending rates are contributing to the gains in housing demand, the region has also benefitted from significant gains in employment. Employment levels have not only risen above pre-pandemic levels but have improved to levels not seen since early 2019,” the Alberta Real Estate Association’s summary states.
House prices are edging closer towards the highs recorded in 2014 with the average single detached home going for $376,207 — an eight per cent increase from last June.
The average price of a semi-detached home went up even more, to $269,542 — a 20 per cent increase from 2020.
While there were more sales properties available in June, there was still far less inventory than usual, leading demand to outstrip supply, raising house prices.
“When considering different price ranges, the months of supply remains below three months for detached product priced below $500,000, and well above three months for the upper end of the market.” The Alberta Real Estate Association concludes this will likely cause significant variation in price trends depending on the price range and property type.
In the first half of the year, average prices in the city totalled $338,045 — nearly nine per cent higher than last year’s levels.
Single detached homes led June sales, with 140 sold, compared to 19 semi-detached units, 32 row houses and 13 apartments.
Most of the homes sold were within the $200,000 to $399,999 price range.
But comparisons with 2020 show sales of homes in the $400,000 to $599,999 price range have more than doubled from last year.