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Faster home sales and fewer listings – that’s how the Central Alberta real estate market looks this spring.  

With the red hot seller’s market, the best time is now. 

Rising sales 

This March, 204 residential properties were sold in Red Deer. A 10 percent increase from one year ago, which was 186.  

In Sylvan Lake, meanwhile, there has been a whopping 67% increase in sales, from last year’s 47 to this year’s 76.  

The rise in sales is being attributed to a rebounding economy, the city's affordability and lifestyle, and buyers being smart about their investments. 

Jean-Guy Turcotte, Regional Mortgage Group Mortgage Associate, meanwhile attributes the current market situation to the opening of the province and the easing of pandemic restrictions.  

“Spring is finally here and with restrictions being lifted many of us are slowly shaping and venturing into a post-pandemic environment,” said Turcotte.  

Low Supply 

On the other hand, March has further depleted the inventory in Central Alberta.  

In Red Deer, the inventory is down 20%, 451 this year from last year’s 566. In Sylvan Lake, the inventory has also decreased 20%, from last year’s 142 to this year’s 114.  

The easing of the restrictions is expected to bring changes to the current inventory situation.  

In the past two years, people have held back selling their houses because of the uncertainty caused by the pandemic. But now, when everything is slowly going back to normal, more sellers might be joining the market.  

With a high buyer activity and lower inventory, you are most likely to get the best deal when you sell your home. 

Today, sellers have the upper hand in home negotiations. However, it won’t last forever. If you are planning to sell, find yourself the best realtor and sell your property now! 

Prices up but still more affordable 

The prices in Central Alberta are going up slightly. In Red Deer, the median price is $321,000 (up 2% than last year), while in Sylvan Lake, it is $324,500.00 (up 4% than last year).  

These prices are relatively cheaper than the rest of the province and the country, however. In Calgary, the average price of residential properties is over half a million dollars. Meanwhile, Toronto, currently the most expensive housing market in Canada, has a whopping $1,313,400 benchmark price.  

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Fast pace 

With the growing demand yet limited supply, houses are selling faster than last year. In Red Deer, the cumulative days on the market of a property is down 31%, from last year’s 39 to 27 this year. In Sylvan Lake, meanwhile, properties sell even quicker, from last year’s 41 days to this year’s 21 days, a 49% decrease.  

The Central Alberta market is definitely looking towards an improved inventory situation as we move further into spring. Economists are expecting that more sellers will come into the market soon after the recent announcement of rates hike by the Bank of Canada early this month.  

“Rate changes have been a highlight in the last few weeks with several fixed rate increases and the Bank of Canada increasing its key interest rate for the first time since 2018. With Canada’s inflation hitting the highest rate in February since August of 1991, the Bank of Canada will be taking action to curb inflation including an expected series of rate hikes,” said Turcotte. 

“More sellers may be (finally) making their way into Canada’s housing market,” wrote RBC senior economist Robert Hogue in a new report as published in financialpost.com. 

The Bank of Canada is slated to have another announcement this April 13.  

If you are eager to sell, we have the best team of realtors to help you.