It’s a fresh new year!   

The year 2022 has left us with some challenges, but it also bid goodbye with some amazing news. Among those is that while the rest of the country struggled with the housing crisis, Red Deer’s residential sales have reached a record level in years.   

According to Red Deer Advocate, November's yearly sales are down compared to last year, but it’s up 6% on a yearly basis, which is the best in many years.  

The month of November closed with 1,913 residential units sold, which marks the highest number of sales since 2015, as reported by the Multiple Listing Service statistics tracked by the Central Alberta Realtors Association.  

Moreover, another sign that shows the boom in real estate is the across-the-board average price increase of 4-5%, which is last seen in 2014.  

AREA reported that there has been some correction in the soar of prices earlier in the year, which resulted in the residential average prices remaining an average of five percent higher than last year.   

“While higher lending rates have weighed on recent activity, fundamentals remain strong in Alberta. A return of both international and inter-provincial migration and job growth have supported sales activity that is far stronger than levels achieved prior to the pandemic,” says AREA.  

According to the Association, this should prevent the same type of correction in our province relative to other parts of the county.  

With all these good statistics in the Red Deer and Central Alberta real estate market last year, now what?  

2023 Red Deer Real Estate Market Outlook

The year 2023 is off to a good start. While we are still bouncing back from the pandemic, experts believe that it is going to be a challenging but great year for the real estate industry.   

But like how it’s been last year, Red Deer and Central Alberta, are looking to have a more localized trend than what is happening at the national level.   

The average number of years to sell a home is down to 50 from last year’s 63, which means buyers are still out there, contrary to national media saying buyers are holding back from purchasing homes this year.   

With Alberta’s invitation for inter-province migration, we are still looking for more newcomers coming into the province this year. For more context, the purchasing power in Ontario is 25% lower than that in Alberta. Therefore, there is no doubt that these newcomers will drive our market further.   

Those who are into a more laid-back lifestyle while living in an urban place will definitely be attracted to what Red Deer offers.   

News reports are saying the real estate market is going to crash, but Red Deer’s market is far from looking that way. In fact, the Red Deer Real Estate market is potentially looking to have more sales, and the average price is potentially going to be more stabilized.   

We are still seeing a relatively tight market with inventory levels at three months of supply, so we are hoping for more new properties in the market this year.  

If you’re looking to sell now but are worried about all the news that’s spreading around, be advised that it’s better for you to talk to a real estate professional so that you can get advice that is tailored to your needs and situation.   

Fingers crossed 2023 is going to be a great year. Just like you, we can’t wait to see how it unfolds. For all your real estate needs this year and beyond, don’t forget to give us at Lapp Realty a call. We will bring you to your home in Central Alberta.