If you’ve been watching the Central Alberta housing market, you’ve probably noticed two headlines: more homes are hitting the market, and sales are cooling off. Sounds contradictory, right? But that’s the reality of August 2025.

More Central Alberta homes are hitting the market, sales are softening in some towns, yet prices remain on the rise.

Inventory’s Building—But That Doesn’t Mean Buyers Are Rushing In

Across the province, sales slipped nearly 7% compared to last year. That’s not a massive plunge, but it’s enough to make people pause. Row housing and apartments have now led the decline for five months straight. Meanwhile, new listings crept up 4.3%, which pushed inventory 16.3% higher year-over-year.

So, what does that mean in plain terms? Buyers suddenly have more choices, but not every property is moving quickly. Some homes are sitting, while others—especially in the right neighbourhoods at the right price—are still flying.

As Kevin Lapp, seasoned realtor at Lapp Realty, puts it: “More listings don’t always translate into stronger sales. The type of property, location, and price point really matter.”

The Balance Is Shifting

Even with slower sales, the sales-to-new-listings ratio held steady at 63% in August. That’s considered balanced. On top of that, Alberta now sits at about 3 months of supply—roughly 25% higher than last year.

But here’s where things get interesting. Larger centres like Red Deer and Calgary are starting to loosen up.

In Central Alberta, Red Deer reflected the provincial trend. Sales fell 14.3 per cent while new listings climbed 8.2 per cent, and inventory rose 13.5 per cent. Yet the average price still moved higher by 7.2 per cent, reaching $413,129.

Other towns showed even more dramatic contrasts. Blackfalds saw a 36.1 per cent surge in new listings and a 51.2 per cent rise in inventory, but average prices dipped 7.3 per cent. Innisfail’s sales were down 36.8 per cent, though prices climbed a surprising 16.4 per cent. Meanwhile, Lacombe emerged as one of the hottest spots, with sales up 25 per cent and average prices soaring nearly 31 per cent.

“In some markets, supply is loosening, but in others, limited availability is still pushing prices higher,” Lapp explained. “This shows just how localized real estate really is in Central Alberta.”

Prices Are Still Climbing (Yes, Really)

Across the region, Lacombe, Penhold, and Sylvan Lake saw double-digit price gains, even as inventories grew.

“Price growth in certain markets shows the resilience of Alberta real estate,” Lapp said. “When demand stays high and supply remains tight, prices are going to climb—even if overall sales numbers dip.”

It’s a bit of a paradox—fewer sales, yet higher prices. But that’s real estate. Tight supply in certain segments keeps pressure on prices. If you’re in the market for a condo, you might have some breathing room. But if you’re hunting for a semi-detached in a hot area, bring your A-game.

What This Means for You

For buyers, the message is simple: patience is back on the table. More inventory means you don’t have to leap on the first house you see.

For sellers, though, the strategy matters more than ever. Pricing needs to be sharp. Presentation counts. Flexibility with terms could tip the balance. You can’t just toss your home on the market and expect a lineup anymore.

Heading into fall, the Central Alberta market isn’t moving in one direction—it’s moving in several. Red Deer’s story isn’t Lacombe’s story, and Lacombe’s isn’t Blackfalds’. Timing and location matter, and the “sales down, prices up” narrative doesn’t tell the whole tale.

So if you’re asking yourself, Should I buy now? Should I wait? How do I price my property?—that’s where local expertise makes the difference.

👉 Want this broken down for your specific situation? Call Lapp Realty today. We’ll help you read between the numbers and make a plan that actually works.