We are done with the first half of 2022. I know, right? It went just like that.  

Things in Central Alberta’s real estate market continue to be in an interesting situation while the rest of the country starts to cool down.  

In the first quarter of 2022, the real estate market got hot. However, as interest rates continually climbed, the demand started to subside. Other factors that continue to impact the market include the economy, jobs, migration, and the weather.  

That’s on the macro level. Let’s zoom in, however, and take a look at the July 2022 market situation in Central Alberta.  

Red Deer

In Red Deer, according to Alberta Real Estate Association, earlier this year the market saw a slight decline in home sales, but in July, the number of sales remained above levels relative to last year. With a 23% increase in sales this year, the Red Deer market is still in a strong volume of sales based on long-term trends.  

The increase in sales can be mostly attributed to the stronger growth in the more affordable higher density properties.  

The inventory, meanwhile, is in a stable situation compared to the previous months. However, we see a decline when compared to last year’s data. 

While the changes in the market helped the supply conditions to improve over compared to the recorded months earlier this year, but with only less than three months of supply, conditions remain relatively tight. 

Residential prices are relatively stable on a year-to-year comparison with a 1.9% decrease compared to last year.  

Red Deer remains to be one of the most affordable markets in the whole of the country. 

As reported by Red Deer Advocate, the said city has the most affordable housing costs in Canada. According to their data which compares the percentage of incomes to their mortgage payments, Red Deerians, on average, spend 25.86% of their incomes on mortgages. 

The affordable housing in Red Deer is not a surprise as the city is really one of the top places out-of-province people consider moving to. Other than that, more job creation in Alberta is another factor why many people from B.C. and Ontario move to this area.  

Sylvan Lake

Meanwhile, in Sylvan Lake home sales have slightly decreased on a year-to-year comparison.  

There is also a slight decrease in the inventory, but it is important to note that with three months of supply, Sylvan Lake market is still in a healthy condition.  

The average price of residential properties in Sylvan Lake is still among the highest in Central Alberta. Even when the average selling prices have decreased in other parts of the country, Sylvan Lake’s prices have gone 14% up on a year-to-year comparison. 

Here are other real estate markets in Central Alberta that might interest you: '

Lacombe

Blackfalds

Innisfail

Penhold

Innisfail remains the most affordable town in Central Alberta when it comes to housing while Lacombe has the highest median list price.  

While the most of the national media reports that the market is slowing down in Canada, the reality is that it has become more regionalized. In Central Alberta, things are actually getting back to normal rather than slowing down.  

Opportunities are looking bright in Central Alberta’s real estate. Take advantage of it now. Talk to your trusted local real estate agent for professional advice on how you can take advantage of this market situation.