Low inventory and high demand continues to be the theme in Alberta. The Bank of Canada has another rate announcement scheduled for July 12, and if I was a betting man, I’d say we’re about to see another rate increase of .25%. Our provincial economy continues to be one of the best in the world right now, and the national economy just added 60,000 jobs in June, which is not a sign that things are slowing down the way they had hoped.
Looking forward, I do believe calmer months are ahead of us. Provincial migration always slows down in the late summer, as most families planning to make a move from another province will aim to do so before school starts. Another increase in interest rates will also calm things down somewhat, which ultimately is the intended outcome. All of this should make buying a home in the fall and winter months a little easier than it has been over the spring and summer. The Red Deer market sold 51% of the inventory in June, down just slightly from May, but still a strong seller’s market overall.
Demand continues to be extremely strong for the market under $600,000 in all types of housing, but detached homes are still the most sought after. Sales from 600k – 800k have picked up over the last 3 months, however there were zero sales over $800,000 in Red Deer in June, despite there being 23 available listings, and 13 of those over 1 million. Condo activity has also been strong, likely due to attractive price points, which has been a big shift from COVID years. Acreage activity has been minimal, however this is due to a record low number of them for sale, except over the 1 million mark, where there’s currently 36 active listings in Red Deer County.
Surrounding Community Snapshot:
Blackfalds:
Current Active Listings – 55
Sales in June – 32
Likelihood to Sell – 58% (Seller’s Market)
Sylvan Lake:
Current Active Listings – 154
Sales in June – 43
Likelihood to Sell – 28% (Balanced Market)
Penhold:
Current Active Listings – 17
Sales in June – 11
Likelihood to Sell – 65% (Seller’s Market)
