April was another hot month in Central Alberta, with Red Deer selling just over 50% of the available housing inventory, and many of the smaller surrounding communities seeing similar numbers. The market is still being primarily driven by out of out of province buyers, mostly from Ontario and BC, coming to Alberta for lower cost of living.
Demand for acreages and detached homes is still very strong, while attached housing (duplexes, townhouses, and condos) is lagging slightly behind. Attached housing categories are just now starting to reach either balanced or seller’s market territory. One important note for detached homes is that we’re back to 2014 price points, the all-time high for the market in Central Alberta, and I believe we will push beyond those levels, with little risk of going back down. With inflation at its current levels, and given current construction and renovation costs, along with the fact we still have some of the most affordable real estate in Canada, and I don’t see any situation in the next 3-5 years where prices fall, despite rising interest rates.
Duplexes, townhouses, and apartment condos are generally price point purchases for most people (but not all), meaning that if they can’t get what they want in a detached property for their budget, they’ll look at sharing walls or buying into a condo property as an option to bring costs down. When housing is cheap, people will generally opt for detached homes over attached properties, however as prices and interest rates rise, attached homes will start to become more appealing for more buyers. As prices continue to push up, demand and prices for attached properties will follow suit.
Surrounding Community Snapshot:
Current Active Listings – 63
Sales in April – 39
Likelihood to Sell – 60% (seller’s market)
Current Active Listings – 124
Sales in April – 78
Likelihood to Sell – 61.9% (seller’s market)
Current Active Listings – 23
Sales in April – 14
Likelihood to Sell – 68.3% (seller’s market)