Things went by so fast and we’re now in the middle of February. How are things shaping up in the Central Alberta Real Estate market? Spoiler alert, the first month of Central Alberta real estate is looking solid. 

When 2022 ended, the terms “high-interest rate,” “housing market bubble,” and “market crash,” were all highly talked about. But contrary to what is being populated in the mainstream media, the market in Central Alberta has a different situation. In fact, things are looking optimistic in Central Alberta’s housing market. 

According to Alberta Real Estate Association (AREA), The Central Alberta real estate market is not only looking stable, but it’s going strong.  

In Red Deer, there aren't as many homes on the market right now. This may be due to sellers choosing not to list their homes which leave limited options for buyers in the market. 

However, this drop in sales and the relatively tight market shows that a check and balance is going on in the Central Alberta market.  

Central Alberta’s seasoned mortgage broker Jean-Guy Turcotte says many signs make him confident to say that the market in the area is recovering and is heading to strong levels come the Spring market.  

“Last year, people were buying for fear of missing out. Then Fall came, the rates rose and the business of the market slowed down. The market went softer and a lot more people were trying to understand how the market is going to be for the next 12 to 15 months. And this is where the things are pointing at now in Central Alberta,” he said in an interview at The Property Show.  

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According to the mortgage broker who’s been serving Central Alberta for the past 17 years, the business in this year’s market, even though it’s only been a month, mostly comes from people from outside of the province who are looking to relocate to Alberta. 

“I’ve had the busiest January I’ve had in years. I typically have a very busy January but the number of calls I’m getting is not slowing down,” he said.  

People are confident in Central Alberta that the values are going to remain the same, they have jobs here, and prices are not as expensive as British Colombia or Ontario,” Jean-Guy continued.  

“In my 17 years, I have never had this many people moving from the coast to Alberta,” Kevin Lapp, Realtor® and Team Leader of Lapp Realty seconded.  

According to Kevin, Alberta is proving to be attractive to people who are from the coast, like Toronto, Ontario, and Vancouver, because Alberta has a lower cost of living, not just real estate, but also groceries and fuel.  

“I can see that the high-interest rate environment in places like Ontario or Vancouver will drive people from those areas to consider moving to Alberta because of the affordability it offers. They can sell their properties in those areas at a much higher price and buy a home in Alberta that only costs a fraction of the amount they got,” said Kevin Lapp. 

According to CREA, in December 2022, the average house price in British Columbia is as high as $907,456 and in Ontario, it’s at $812,338. Meanwhile, in Alberta, the average price is at $424,496. It’s even cheaper in Central Alberta region where the average sits at $323,376. 

“Alberta is relatively cheaper, but it’s even more affordable here in Central Alberta, and you can find similar forms of recreational activities in the area as you can in Calgary or Edmonton,” Kevin said. 

Moreover, there are a lot of job opportunities in Alberta which offer higher pay than in other provinces, and that is another reason why things are looking to be positive in Central Alberta.  

Taking in these factors, the buyers who are being conservative right now may jump into the market once the interest rates stabilize, therefore it is expected that the market to heat up again as we go through the year.  

As the Spring market is approaching, Kevin’s advice for those who are looking to get into the real estate market is to talk to an expert real estate agent to get the best advice on how you can leverage the current market is going.  

“If you're a buyer who's sitting on the fence whether buying, talk to an expert. If you are thinking of getting that dream home once the interest rate stabilizes, working with an expert realtor is the best favour you can do to yourself,” Kevin said.  

 “If you are a seller who didn't sell your home last year because you were waiting to get your property priced high, the Spring market is looking positive for you,” he added. 

If you have any questions about the status of the real estate market in Central Alberta, we're here to help! Simply call or email us and our expert agents will be happy to explain the numbers to you. 

Let’s take a look at the numbers shown by AREA.  

Red Deer Real Estate Market Update January 2023

Sylvan Lake Real Estate Market Update January 2023

Lacombe Real Estate Market Update January 2023

Blackfalds Real Estate Market Update January 2023

Ponoka Real Estate Market Update January 2023

Penhold Real Estate Market Update January 2023