Attached houses accounted for most of the home sales in Red Deer in August 2022, compared to detached homes.  

According to Alberta Real Estate Association (AREA), the rising lending rates made the buyers shift towards more affordable products, hence the 138% increase in sales of attached houses on a year-over-year comparison.  

Meanwhile, the sales of detached homes have seen a dip with an -11% decline in the same month last year.    

Overall, residential properties saw a 3% decrease compared to last year with 154 properties sold. As someone looking to buy or sell a property in Red Deer, is this something you should worry about? I don’t think so.   

Red Deer residential properties are still higher than usual with 1517 sold on a year-to-date basis, a 12% increase from last year. 

The increase in interest rates and the season change are the two most likely reasons for the recent shifts in the market. Fall is usually the time when the market begins to slow down.   

The inventory in Red Deer has also seen a slight slowdown over the past few months. With only 224 new listings, we see a 14.8% decline that last year’s inventory. As of August, we have a total of 523 houses on the market, which is 23.4% lower than last year.   

In this competitive situation, buyers will compete for the best-priced houses because of the limited options available. Therefore, we need more houses on the market to normalize the inventory.   

However, a little disclaimer, this situation is typical at this time of the year with families settling down as schools begin and the hot weather starts to get colder.   

AREA reports that with 3.4 months of supply this month, we are at among the lowest levels seen for Red Deer since 2014.   

Meanwhile, residential prices have remained relatively stable compared to last year despite the tight market conditions.   

According to AREA’s reports, the sales of detached houses are only 66 percent of the total compared to last year when they represented 72 percent of all sales.  

The following are the average prices of different property types in the market for August 2022.   

• Total Residential Average Price $338,850 2.8% Y/Y  

• Detached Average Price $394,765 9.2% Y/Y  

• Semi-Detached Average Price $279,018 2.6% Y/Y  

• Row Average Price $208,329 8.7% Y/Y  

• Apartment Average Price $193,65515% Y/Y  

Meanwhile, the data for the neighboring areas in Red Deer are as follows:   

Sylvan Lake Housing Market Update  

Blackfalds Housing Market Update 

Lacombe Housing Market Update