Central Alberta residential MLS sales in July slowed by 9% compared to June, and 22% compared to May.  It’s not unusual to see things calm down from the spring months as consumers focus on the end of school, graduations, and summer holidays rather than home purchases.  Active listings in Red Deer sit at 332 which is on par for where things were in June.  As supply increases and with demand starting to ease, we are starting to see slight corrections in pricing across the slower market segments, such as the 600k+ price points.  While the under 500k market will stay strong for the foreseeable future, we will hopefully start to see the higher price points be more in demand as rates continue to drop and those homes become affordable again for a larger portion of the population.

Despite things calming down, all of the central Alberta markets, except Clearwater County, are still strong seller markets.  We expect supply to increase in the coming months as builders start to ramp up new construction.  New data from Canada Housing and Mortgage Corporation shows that May was very strong with 4,113 housing starts in Alberta, a historic high.  A recent report by ATB Financial shows that over 40 percent more residential building permits have been issued year-to-date in 2024 compared to 2023 and some of those starts are happening in central Alberta.

The average single family sale price in Central Alberta is up almost 12% in 2024 compared to 2023 and up 43.6% compared to 2019.  Those higher resale prices have created an environment in which new home construction can compete.  Another factor contributing to more new construction:  The province is leading the country in having the fastest permit approval times and the fewest roadblocks to building according to Jason Nixon, Alberta Minister of Seniors, Community and Social Services.