Residential MLS sales in central Alberta in December were down 24% compared to November, while year to date sales were down 8.9% compared to 2021. Higher interest rates are surely contributing to slower sales, but the shortage of available homes is also a major contributor. Inventories in central Alberta are the lowest in memory and there is still strong demand, especially in the low to mid price ranges, creating a tremendous advantage for move up buyers.

Dr. Sherry Cooper, Chief Economist at Dominion Lending Centres is forecasting at least one more small increase in the Bank of Canada rate early in 2023 and no reduction in rates the rest of this year. She expects to see a mild recession and persistent inflation in 2023 with the economy starting to recover in 2024. We believe the Alberta economy and real estate market will be the strongest in Canada in 2023. Those high oil and gas prices are the bedrock of the Alberta economy, but agriculture, manufacturing and high tech are also major contributors.

More than 100,000 people moved to Alberta in 2022 and they all needed a place to live. Some of them came from B.C. and Ontario where they sold expensive homes and took advantage of much lower prices here. The rest of Canada is forecasted to go into recession in 2023, so there will be likely be more people moving to Alberta drawn by a stronger economy, more affordable homes, lower taxes and cost of living.  Our conclusion – Despite interest rates, overall real estate sales and prices will be stable in 2023, and the most desirable properties and in demand price points will see increase.

Surrounding Community Snapshot:

Blackfalds:

Current Active Listings – 28

Sales in December – 13

Likelihood to Sell – 36.6% (Balanced Market)

Sylvan Lake:

Current Active Listings – 88

Sales in December – 18

Likelihood to Sell – 19.1% (Buyer’s Market)

Penhold:

Current Active Listings – 16         

Sales in December – 1

Likelihood to Sell – 5.7% (Buyer’s Market)