The Red Deer Real Estate Market has seen a significant improvement in sales activity compared to last year's levels in September 2023. 

According to the Association of Alberta Real Estate Association (AREA), there were 165 housing units sold in September, which is a significant 30 percent increase compared to the same month in 2022. 

This upward trend has been going on for five consecutive months, however, the lack of inventory hasn’t completely offset the pullbacks experienced earlier in the year. 

Sales Up, Inventory Not Keeping Up 

“While recent gains haven't completely offset the pullbacks experienced earlier in the year, year-to-date sales remain impressively 15 percent higher than the long-term trend for the city. This surge can be attributed to a combination of factors, including higher lending rates and, notably, a limited supply of housing choices,” AREA said in its monthly market update. 

Red Deer hasn’t experienced this low inventory activity since 2006.  

Limited Supply, High Demand 

One of the primary factors influencing the Red Deer housing market is the limited supply of available properties.  

In September, new listings declined, causing the sales-to-new listings ratio to soar to 100 percent.  

Last month, there were 165 new property listings, an 18 percent decrease from the previous year. The current inventory stands at 283 units, which is a substantial 41 percent decline from the prior year. 

Months of Supply 

Due to the persistent tight conditions in the market, the month of supply is significantly lower than what is typically observed at this time of the year which have driven up property prices across most types, with detached home prices rising by nearly three percent.  

However, it's important to note that year-to-date total residential prices remain comparable to last year's levels. This is because detached homes now account for a smaller share of total sales activity compared to the previous year. 

The Importance of Understanding the Real Estate Market 

In a market like Red Deer, where limited supply and high demand are driving prices and sales, not having a grasp of these factors can lead to costly mistakes. 

The current Red Deer housing market scenario highlights the critical importance of understanding the real estate market before making any property-related decisions. Whether you are a buyer, seller, or investor, being well-informed about market trends, supply and demand dynamics, and pricing trends is essential. 

Navigating this market  

In a seller’s market like what we are currently experiencing, buyers may find themselves in bidding wars, while sellers could miss out on maximizing their property's value. Investors, too, need to carefully assess the market conditions to make informed investment decisions. 

Here are some of our tips in navigating this market for sellers:  

1. Respond Quickly: Be prepared for multiple offers. Respond promptly and professionally to potential buyers to keep them engaged. 

1. Market Effectively: Use professional photography and online listings to showcase your home. Your agent should employ a comprehensive marketing strategy. 

1. Price Realistically: While it's a seller's market, don't get overly ambitious with pricing. Overpricing can deter potential buyers. 

Meanwhile, if you are a buyer and you’re not happy with the lack of options, don’t worry, you still have a good chance of acing that dream home if you work and communicate openly with your realtor. Here are some tips for you:  

1. Be Prepared: In a seller's market, homes can sell quickly. Get pre-approved for a mortgage so you know your budget and can act swiftly when you find the right property. 

1. Act Fast: When you find a property you like, don't wait too long to make an offer. Delaying could mean missing out on the home. 

1. Work with a Real Estate Agent: An experienced agent can provide insights into the local market, help you find listings faster, and offer guidance on making competitive offers. Contact us if you need a Red Deer real estate expert to work with.  

Conclusion 

The Red Deer, Alberta housing market continues to be an evolving landscape. Sales are on the rise, primarily due to limited supply and strong demand, leading to price gains in various property types. However, it's crucial for anyone considering entering this market to take the time to understand its nuances and trends. Only with this knowledge can you make sound real estate decisions that align with your goals and objectives. Stay informed by working with a trusted realtor, and you'll be better equipped to navigate the ever-changing Red Deer housing market.