Market stats for February are attached, and here’s the quick summary of what’s going on in the Red Deer market currently:

Overall Market Trends

✅ Sales Growth – 130 homes were sold in February 2025, up from 110 in February 2024.

✅ Active Listings Decline: Active listings dropped from 266 in February 2024 to 192 in February 2025.

✅ New Listings Decrease: 146 new listings were added in February 2025, down from 166 in February 2024.

✅ Absorption Rate Surge: Increasing demand and low inventory pushed the absorption rate from 41.4% to 67.7%.

Single-Family Homes

🏡 Prices rose – Average sale prices rose 17.3% from last year to $478,601.

🏡 Sales grew – 81 homes sold, an increase from 66 last February.

🏡 Fast paced market – Absorption rate rose from 41.5% last year to 66.4%.

Acreage Market

🌲 Mid-range activity – $500K-$800K saw the most activity.

🌲 1M+ price struggled – 17 active listings over $1M, but only 1 sale (6%).

🌲 Scarce low-end inventory – There were only 3 active listings under the 500K mark.

Market Supply & Demand Trends

⬆️ Home prices are rising – This is consistent across all property types, making it a seller’s market. 

📉 Lower inventory – February had 192 active listings, down from 266 last year, making the market more competitive for buyers.

💎  Slower High-End Sales – Detached homes priced over $700K in Red Deer had minimal sales activity with only 4 sales.

🌷 Seasonal demand is increasing – As we move toward spring, this type of year typically brings more buyers into the market.

What This Means for Buyers & Sellers

For Sellers:

✅ Great Time to Sell: With rising prices and strong demand, especially in the mid-range market, sellers in high demand price ranges can expect multiple offers.

✅ Low Inventory, Less Competition: With low inventory across all types of homes, this is a great advantage to sellers.

✅ Pricing Strategically is Key: While demand is high, overpricing could still slow down your sale, especially in the luxury market.

For Buyers:

✅ Expect Competition: Especially in the mid-range and affordable price points, be prepared to compete in multiple offer situations.

✅ Waiting Could Cost You: Homes are selling quickly – be ready to act fast, and have your pre-approval in place.

✅ More Negotiating Room in Luxury: Due to slower sales—buyers in this range may have more room to negotiate in a sale.

✅ Spring Market: Spring typically brings more inventory, but demand will likely increase with it.

Overall the market is already showing signs of being busy (which typically doesn’t happen this early), 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.

Surrounding community stats:

Blackfalds:

Current Active Listings – 34

Sales in February – 20

Likelihood to Sell – 59% (Seller’s Market)

Sylvan Lake:

Current Active Listings – 55

Sales in January – 29

Likelihood to Sell – 53% (Seller’s Market)

Penhold:

Current Active Listings – 5

Sales in January – 2

Likelihood to Sell – 40% (Seller’s Market)