Fall 2023 Real Estate Market Update
Each community in Central Alberta has benefited from the improved economy. Reviewing our slides below you'll note some similarities as well as some unique differences. See the comparisons below for January 1 - October 31st, 2023:
Red Deer led the way with sales and listings as one would expect due to the population size of the community.
The smaller communities have a tighter supply and demand ratio. This dynamic is helping to hold prices and in some cases, we're seeing stronger price growth.
Sales volume at the end of October for Red Deer was reported as 1,621. Followed by Sylvan Lake at 412, Blackfalds at 237, Lacombe at 221, Innisfail at 141 and Penhold with 83 sales ytd.
All the communities report positive trends, particularly around the average price points.
Red Deer Real Estate in 2023:
2023 has been a robust year for Red Deer's real estate market. However, the lack of options for buyers to select from due to the economy and interest rates is making it more expensive to buy a home. Nonetheless, sales volume has remained positive, with overall sales volume for Red Deer real estate only down 10% from 2022. You can see in the chart that we started the year lagging 2022, and then had a hot summer. The high sales and low inventory dynamic are usually ideal for selling tenant-occupied homes, and those homes with unique or quirky characteristics that make them hard to sell in buyers' markets.
If it's so strong, why am I seeing houses sitting on the market in my area?
The YTD average closing price for ALL property types is currently at $340,567. For Single-family detached homes, it is $411,858. Certainly, by looking at where the sales and listings are in the chart to the left, we can see that the $500,000 remains an affordability barrier. That price point and higher is a significantly quieter price point. Today’s posted interest rates of 6.5-7% are having a direct impact on higher price points. Buyers qualifying today have to qualify with the addition of a 2% points stress test. i.e. moving that qualifying rate to 8-9%.
How much is a house nowadays?
Depending on where you want to live, there are some more communities with lower pricing. Usually, a direct relation to distance from the larger centers such as Red Deer. Sylvan Lake leads the way with the highest average sale price of a house with $421,912 YTD for a home.
- Red Deer $411,858
- Blackfalds $390,760
- Lacombe $384,656
- Sylvan Lake $421,912
- Penhold $377,877
- Innisfail $344,216
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