The housing market in Central Alberta has been experiencing a significant shift in recent months, with low inventory levels becoming a pressing issue for potential homebuyers.  

According to the Alberta Real Estate Association’s (AREA), Red Deer’s real estate market is the lowest it’s been since 2006. 

“This scarcity of available homes is creating a highly competitive environment, leading to rising prices and longer wait times for those looking to purchase a property in the region,” Kevin Lapp of Lapp Realty explained.  

Factors Contributing to the Low Inventory Levels 

The low stats of new houses have played a significant factor in the current state of the housing market. This puts additional strain on the already scarce supply of existing homes. 

Furthermore, the market has returned to pre-pandemic levels, as the demand for larger spaces has become more subdued compared to 2022 levels, due to an increasing number of people transitioning back to office setups. 

Additionally, rising interest rates are contributing to slower sales, making it more difficult for individuals to enter the market. 

What’s it for you? 

According to the Central Alberta REALTORS® Association, the average price of a home in the region increased by 5.3% in 2021 compared to the previous year.  

This rise in prices can be attributed to the limited inventory, with buyers facing increased competition for the few available properties.  

As a result, many potential buyers are finding themselves in bidding wars, often paying well above the asking price to secure a home. 

Different groups are facing unique challenges in this low inventory market.  

First-time homebuyers, for example, may struggle to find affordable properties due to the rising prices and increased competition.  

Families, on the other hand, may face difficulties in finding suitable homes that meet their space and location requirements. Seniors looking to downsize may also encounter challenges, as the limited availability of smaller homes may force them to delay their plans or settle for less desirable options. 

Economists and industry professionals are closely monitoring the situation, with some predicting that the market will eventually balance out as more sellers decide to list their homes and new construction projects are completed.  

"We expect that as the pandemic subsides and the economy continues to recover, more homeowners will be willing to list their properties, and inventory levels should gradually improve," Kevin said. 

If you are in the fence of putting your home on the market, now may be the best time for you.  

A shortage of available homes creates competition among buyers, leading to more offers and potentially higher selling prices.  

Moreover, with fewer properties on the market, buyers are more likely to place offers quickly and engage in bidding wars, ultimately benefiting the seller. 

Additionally, in a low inventory market, sellers may experience shorter listing times, as homes tend to sell faster due to the high demand. 

Should you require further guidance on how to take advantage of the prevailing market conditions, reach out to local real estate agents who can provide a customized market analysis based on your specific needs and assist you in making well-informed decisions. 

Conclusion  

In conclusion, the Central Alberta housing market is facing unprecedented challenges, with inventory levels at their lowest in decades.  

This situation has led to increased competition among buyers, rising prices, and a more challenging environment for various groups, including first-time homebuyers, families, and seniors.  

However, for home sellers, this low inventory market presents an opportunity to potentially receive higher offers and enjoy faster sales.  

As the economy continues to recover and more properties become available, the market is expected to stabilize. In the meantime, it is essential for buyers and sellers alike to work closely with local real estate professionals to navigate this unique market and make well-informed decisions. 

The following are the real estate market statistics for May in the primary Central Alberta areas.