Feeling overwhelmed by the changing housing market in Red Deer?

In this September 2024 update, we’ll walk you through the latest trends in the Red Deer real estate market, including price increases, new listings, and what they mean for homebuyers and sellers. These insights can help you make more informed decisions whether you're looking to buy or sell.

Market Overview for September 2024

The average home price in Red Deer rose 0.3% year-over-year, reaching $357,625. Detached and semi-detached homes are showing the strongest price growth year-to-date, but the sales-to-new-listings ratio has dropped to 83%.

Price Trends in Red Deer

With 168 new listings and 138 sales, the inventory levels have remained steady, although they’ve decreased by 9.9% year-over-year. Buyers have more options on the market, but sellers can still take advantage of the ongoing price increases driven by a shortage in supply.

Economic Drivers Impacting Red Deer’s Housing Market

Alberta has experienced a population increase of 204,000 people in the past year, fueling demand for housing. This influx, coupled with a strong economy and diversified sectors, will likely keep pushing local home prices upward.

The Bank of Canada is expected to announce a 0.5% reduction in its key interest rate on October 25, followed by another 0.25% cut in December. These rate drops are a welcome sign for the economy and could signal lower fixed mortgage rates on the horizon, making homeownership more accessible for many buyers.

Additionally, the federal government has introduced 30-year amortizations for first-time buyers of new construction homes. This move aims to support home builders by encouraging new inventory, addressing the current housing shortage in Alberta.

While these changes will certainly improve short-term affordability, reduced interest rates and extended amortization periods will likely increase demand, which in turn could drive prices up if inventory remains low. Prices in Central Alberta are expected to stay stable through the winter, with potential for increases in the spring and summer of 2025. One of the most significant impacts will be seen in the $600K+ price range, where falling rates could bring this market segment back within reach for many buyers.


Let’s take a look at some numbers:

Red Deer Real Estate Market Update September 2024

Kevin Lapp, Team Leader of Lapp Realty, said “We see positive signs for sidelined buyers. As confidence grows and buyers anticipate rising prices, we expect a significant increase in activity.”

These developments indicate a dynamic year ahead for Central Alberta real estate. Want to stay ahead of the market? Contact us today for a free consultation!

Market Update in other Key Central Alberta areas (September 2024)

Sylvan Lake Real Estate Market Update September 2024

Blackfalds Real Estate Market Update September 2024

Lacombe Real Estate Market Update September 2024

Ponoka Real Estate Market Update September 2024

Penhold Real Estate Market Update September 2024

In summary, Red Deer’s housing market is seeing steady price increases, with growing demand fueled by population growth. Whether you’re a homebuyer looking for more options or a seller ready to take advantage of price growth, staying updated on these trends will help you make the right move.

Looking to buy or sell in Red Deer? Contact us for a free consultation and personalized advice!