It’s not new information that the cost of living in Canada, even in Red Deer that is often considered as among the country’s most affordable city, has been skyrocketing.  

From food to housing prices, Red Deer residents have been feeling the pressure of the current economic condition.  

Many have expressed that they are close to giving up their dream of homeownership since they feel that navigating the Red Deer real estate market has gotten very challenging.  

True enough, finding your way through this uncertainty is difficult, especially if you do it alone.  

This blog aims to provide a forecast of the Red Deer real estate market in 2024, to help you have a good head start before the year begins allowing you to prepare ahead for your real estate journey in the upcoming year.  

 

Housing Prices Forecast  

According to Canadian Real Estate Association (CREA), it is anticipated that the yearly average home price across the nation will decrease by 3.3%, reaching $680,686 in the year 2023. 

Similarly, the Canada Mortgage and Housing Corporation (CMHC) predicts that housing prices are going to dip, but not lower than what we saw before the pandemic.  

The province of Alberta, meanwhile, has hyperlocal market situations that don’t necessarily reflect what is going on at the national levels.  

CMHC reports that prices in the provinces are expected to outperform the rest of the country in 2024, with a forecast gain of 4.8% compared to 2023. 

According to a Real Estate law firm, Osuji and Smith, the market is showing some stability, with notable growth in property values across different regions.  

This stabilization is expected to result from a balance between supply and demand dynamics, reducing the chances of a housing bubble and fostering a steady investment climate. 

In Red Deer and the neighboring Central Alberta areas, data shows that the residential prices will remain stable, with stronger price growth expected in lower-priced housing options such as detached and semi-detached sectors. 

 

Sales Activity 

Alberta, a province defined by its vast landscapes and abundant natural resources, is at a pivotal juncture as it approaches 2024. 

With its economy highly revolving around the oil and gas industry, recent improvements in oil prices and enhancements in energy sector policies have set the stage for economic revitalization.  

As the province experiences these shifts, the impact will be seen across various sectors, including real estate. 

Another factor that is seen to continually impact the real estate sales in the province is the interprovince and international migration. 

In the third quarter of 2023, Alberta experienced the largest net gain from interprovincial migration since 1980, adding more than 19,000 people to its population. 

Kevin Lapp, Central Alberta realtor for 19 years, attributed these changes to the province's relative housing affordability, favorable economic prospects, and a high number of housing starts.  

“The influx of migrants is expected to continue to support consumer spending and housing demand while increasing the labor supply,” he said.  

 

Market Conditions 

While the real estate market in Red Deer projects an optimistic outlook for 2024, several challenges could pose risks. 

In 2023, the tight market conditions in Red Deer, with less than 2 months' worth of inventory, have supported price growth, indicating a market that continues to favor sellers.  

Realtors are forecasting an increase in inventory by Spring 2024.  However, several challenges could pose risks to the current forecast including economic uncertainties, fluctuating oil prices, and potential policy shifts can impact market stability.  

 

It's important to note that real estate forecasts are subject to change based on various economic and market factors.  

Therefore, individuals and stakeholders in the real estate sector should continue to monitor market trends and insights. 

Follow trusted real estate agents and teams in social media, read notable real estate blogs, and most of all, seek professional advice to make informed decisions.