Happy New Year!  Below are December’s stats for the Red Deer market, and here is a quick summary of where things are at:

Overall Market Trends

✅ Sales were down slightly – 84 residential properties sold in December, compared to 99 in December 2023.

✅ Fewer new listings – 66 new properties came on the market, down from 82 the previous year.

✅ Inventory declined – 193 active listings, compared to 213 in December 2023.

✅ Home prices rose significantly – The average residential price increased by 20.4% to $388,144 compared to December of 2023.

Single-Family Homes

🏡 Prices surged – Average price climbed 19.1% to $471,228.

🏡 Sales dipped – 53 homes sold, down from 63 last December.

🏡 Faster sales pace – Absorption rate rose to 48.1%, indicating stronger demand.

Acreage Market

🌲 Limited sales activity – Only 5 acreages sold across all price points.

🌲 Higher-end acreages struggled – 18 properties listed over $1M, but only 1 sale (6%).

🌲 Inventory is very low – This is typical in the winter market, inventory will start to increase in the spring.

Market Supply & Demand Trends

📉 Lower inventory – December ended with 193 active listings, down from 213 last year.

📊 Absorption rate remained strong at 43.5% – The market remains balanced, but demand is still high.

📅 Seasonal slowdown in sales – As expected, sales slowed in December but remained steady compared to historical trends.

What This Means for Buyers & Sellers

📈 For Sellers – Prices are still rising, and demand remains strong in key segments, particularly single-family homes and townhouses. Buyers still want move in ready, turn key homes and will pay premiums for those.  Properties that need work and renovations are taking longer to sell unless priced more aggressively.

🏡 For Buyers – Fewer listings mean more competition, especially in the lower and mid-price ranges. Be prepared to act quickly on desirable properties, and prepare yourself for possible multiple offers.

Overall the market is already showing signs of being busy (which typically doesn’t happen this early in January), a sign that it’s likely going to be another heated year for real estate in Central Alberta.  With interest rates coming down, expect to see further price increases as more buyers enter into the market, and inventory levels are likely to remain low.

Here’s your snapshot of surrounding communities:

Blackfalds:

Current Active Listings – 28

Sales in December – 12

Likelihood to Sell – 43% (Seller’s Market)

Sylvan Lake:

Current Active Listings – 53

Sales in December – 29

Likelihood to Sell – 55% (Seller’s Market)

Penhold:

Current Active Listings – 13

Sales in December – 2

Likelihood to Sell – 15% (Buyer’s Market)