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Red Deer Real Estate Market Update


Blog by Amanda Blake | January 15th, 2024


LIME GREEN REALTY'S MARKET UPDATE JANUARY 2024

There were a total of 1837 sales for all single-family, half duplex, row-house/townhouse and apartment style properties in Red Deer for 2023. This is a 7% decrease from 2022 where we saw 1972 sales.

There were 97 sales for the month of December 2023. This is a 39% increase from December 2023 where we saw 70 sales.

Red Deer Real Estate Market Stats - Dec 2023

Although sales overall have decreased slightly year over year, we are still seeing a very strong number of buyers looking to purchase, and properties selling faster.

The average DOM is currently sitting at only 40 days, so we are back in a seller’s market.

The main factor that is driving the quick sales and supporting the high prices, is the significant lack of inventory we are experiencing.

There were only 207 active properties for sale as of January 1 2024 which is a historical low! This is a 22% decrease from last year where we had 263 active properties, and over 50% decrease from 2021!

With sales only down 7% from last year and down 3% from 2021, and inventory decreasing by 50%, this is causing extremely tight market conditions and a housing crisis across the country.

The sales to listing ratio for the month of November were exceptionally high at 93%, causing further reductions in inventory levels.

Some rental rates have increased by 20% causing strain on tenants, which is creating a bit more urgency for them to purchase their own home opposed to renting.

Alberta’s population is growing at the fastest pace in the country right now. Our population has increased by over 200,000 this past year, and there are forecasts of another 200,000-300,000 increase within the next 1-2 years.

There are several people still moving here from out of province and country, looking to acquire property in Alberta due to its affordability compared to other areas within Canada. Currently, Airdrie is the fastest growing municipality within Canada.

Interest rates could begin to fall in mid 2024 if inflation continues to fall, a number of analysts have forecasted.

These factors combined could help bring a bit more confidence into the market, and help support another steady year for sales in the real estate market.

With inventory being the biggest challenge for new buyers, it is making it the ultimate time for sellers to get a quicker sale, and top dollar for their home.

This being considered, if you are thinking about selling within the next year, my suggestion would be to listing early into the New Year before our level of inventory increases in spring, and your amount of competition increases, which could ultimately lead to prices being more competitive if the number of buyers don't increase at the same pace.