January 2026 Red Deer & Central Alberta Real Estate Market Update -

As we step into January 2026, the Red Deer and Central Alberta real estate market is coming off a strong but shifting year. After the fast-paced conditions of 2024 and early 2025, the market is now transitioning into a more balanced and sustainable phase, and that’s an important distinction for both buyers and sellers heading into the new year.

This update breaks down what happened toward the end of 2025, where the market stands right now, and what it realistically means as we move into 2026.

Red Deer Market Snapshot: End of 2025

Despite a normal seasonal slowdown toward the end of the year, pricing in Red Deer held firm and even showed modest growth in key areas.

Key Highlights:

Median sold price (December 2025): ~$385,000

Up approximately 1.3% month-over-month
Up roughly 1% year-over-year

Sale-to-list price ratio: ~97–98%

Sellers continued to achieve close to asking price on average.

Average days on market: ~52–55 days

Slightly longer than fall months, which is typical heading into winter.

Months of inventory: ~2.0 months

Still indicating seller-leaning conditions for well-priced homes.

In short, pricing did not meaningfully soften at year-end, instead, the market stabilized.

Sales activity followed a normal winter pattern, with December showing fewer transactions than peak spring and summer months, but overall 2025 finished as a strong year for Red Deer sales when viewed against recent historical trends.

December 2025 Market Activity

December is traditionally the slowest month of the year for real estate activity, and December 2025 followed that expected seasonal pattern.

There were 72 total sales in December across all property types in Red Deer, including single-family homes, half duplexes, townhomes, and condos. This represents a 43% decrease from November, which is typical as buyer activity slows during the holiday season. Sales were also approximately 13% lower than December 2024, reflecting a quieter year-end compared to the unusually strong activity seen in late 2024.

Looking at the bigger picture, year-to-date sales for 2025 reached 1,794, compared to 1,816 sales in 2024 — a difference of just 1% year-over-year. This reinforces that while monthly activity fluctuated, overall demand across 2025 remained remarkably consistent.

Inventory tightened further heading into December. The number of active listings as of December 1st dropped to 198, down 23% from November, which contributed to continued competition for well-priced homes.

The average days on market increased slightly, rising from approximately 52 days to 61 days, again reflecting normal seasonal behavior rather than a fundamental shift in demand.

In terms of pricing, homes in Red Deer are currently selling for an average of 97.32% of asking price. This suggests that while sellers are not having to make substantial price reductions to secure a sale, buyers are also exercising a bit more caution and negotiating modestly rather than paying full list price.

Overall, low inventory combined with steady underlying demand continues to support pricing stability, even as activity naturally slows during the winter months.

Price Trends by Property Type (as of November 2025)

Breaking pricing down by segment gives a clearer picture of where momentum exists:

Detached Homes:

Average sold price: $455,404

Down ~3% year-over-year, but still the most stable and in-demand segment, particularly under $500,000.

Semi-Detached Homes:

Average sold price: $341,056

Down ~5% year-over-year, reflecting increased buyer choice and more pricing sensitivity.

Townhouses:

Average sold price: $259,097

Down ~1% year-over-year, remaining relatively steady.

Condo Apartments:

Average sold price: $234,476

Up 24% year-over-year, largely due to affordability-driven demand and renewed interest from first-time buyers and investors.

Overall, this points to a market where affordable and move-in-ready properties continue to perform best, while higher supply in certain segments has shifted leverage slightly toward buyers.

Stats are as per the AREA / Pillar 9 City of Red Deer statistics, November 2025.

Central Alberta: A Market Moving Toward Balance

Across Central Alberta, inventory finished 2025 near levels similar to the year prior, while sales cooled modestly heading into winter. This has created what many experts are calling a period of normalization, moving away from rapid price acceleration and toward steady, sustainable growth.

Unlike larger urban centres that saw more noticeable pullbacks late in 2025, Red Deer and surrounding communities have remained remarkably resilient, largely due to relative affordability and consistent local demand.

What to Expect in 2026

Looking ahead, 2026 is shaping up to be a year defined less by dramatic shifts and more by stability and balance.

Rather than another year of rapid price increases, pricing will be influenced more by inventory levels, interest rates, buyer confidence, and property-specific factors such as condition and accurate pricing. Some segments may experience modest gains, particularly well-priced detached homes, while others may remain flatter as inventory continues to adjust.

Overall, the market appears positioned for a more sustainable pace that supports thoughtful decision-making rather than urgency-driven moves.

What This Means for Sellers

The biggest shift for sellers heading into 2026 is this:

The days of “list it and it sells itself” are fading.

Success in today’s market depends on:

Accurate pricing from day one
Strong presentation and preparation
Strategic marketing that creates visibility and urgency
Overpricing in early 2026 is more likely to result in longer days on market and price reductions later, often leading to a lower final sale price.

What This Means for Buyers

For buyers, conditions have improved meaningfully compared to a year ago:

More inventory means greater choice
Conditional offers (financing, inspections) are becoming more common again
Negotiation opportunities exist, particularly outside the most competitive price ranges
That said, well-priced homes, especially detached properties between $300,000 - $450,000, can still move quickly.

Final Thoughts

As we move into 2026, the Red Deer and Central Alberta real estate market is best described as stable, balanced, and opportunity-driven.

Whether you’re buying, selling, or simply planning ahead, understanding how these broader trends apply to your specific neighbourhood and price range is key.

If you’d like a personalized breakdown or want to discuss your plans for the year ahead, I’m always happy to help.

Lime Green Realty - 2025 Performance Snapshot

As market conditions continue to evolve, we believe transparency and performance matter, and it’s important to share how our team performed within the broader Central Alberta market.

2025 by the Numbers

252 total properties sold in 2025

151 listings sold personally listed and sold by Amanda Blake, the #1 Listing Sales Agent in Central Alberta100 buyer transactions completed.

Average days on market: 33 days

Compared to the board average of approximately 60 days

Average sale-to-list price ratio: over 98%

Demonstrating strong pricing accuracy and negotiation results

These results were achieved by a team of just four agents, including:

The top listing agent in all of Central Alberta
Buyer agents ranked in the top 3% out of more than 850 licensed agents in the region

Why This Matters

In a market where results are increasingly driven by strategy, pricing accuracy, and execution, performance like this doesn’t happen by chance. It reflects:

Deep local market knowledge
Consistent systems and marketing
Strong communication and follow-through
A client-first approach on both the listing and buying side
Most importantly, it reflects the trust placed in us by our clients, repeat clients, referrals, and those choosing to work with us for the first time.

We are incredibly grateful for the continued support and confidence our clients place in our team, and we remain committed to delivering thoughtful advice, strong results, and a level of service that stands out in Central Alberta.