Central Alberta's real estate market is matching the summer heat as the sales-to-new listings ratio has soared by 85 percent.

The region witnessed 240 new listings and 204 sales during the month of June which indicates a strengthening market compared to the previous months, according to the data by Alberta Real Estate Association.

Low Inventories and Tight Market Conditions

The month of June witnessed the lowest inventory levels since 2006, primarily due to the high sales-to-new listings ratio. This tight market condition has persisted, with the city now having less than two months of housing supply. Such low inventory levels indicate a high demand and make it challenging for buyers to find suitable properties.

In a seller’s market, fewer homes available for sale. Therefore, there is an increased demand from buyers, and sellers may potentially receive multiple offers on their properties” Kevin Lapp of Lapp Realty explained.

This increased competition can lead to higher selling prices which is reflected in the increase of the total average residential price in the province of Alberta for June which is at $468,519 or a 4% increase on a year-to-year basis.

“On the other hand, low inventory levels can present challenges for home buyers in Central Alberta.” Kevin expounded.

With limited options to choose from, buyers may face increased competition and bidding wars when trying to purchase a property. This can lead to higher purchase prices and a more stressful home-buying process if not guided properly by a seasoned real estate agent.

“It is crucial for both sellers and buyers to stay informed about market conditions, work closely with a knowledgeable real estate professionals like Lapp Realty, and be prepared to adapt their strategies according to the current supply and demand dynamics,” Kevin testified.

“Lapp Realty's team of knowledgeable real estate agents can provide expert guidance to sellers looking to maximize their returns,” he added.

Price Gains and Composition Shifts

While the year-to-date average prices still remain over one percent lower than last year, it's important to note that this decline can be attributed to shifts in the composition of sales activity. Detached sales, which typically have higher prices, accounted for a smaller share of all sales activity in recent months. However, despite this shift, the average price of detached homes has seen an increase of over two percent during the first half of this year, indicating overall price gains in the market.

Meanwhile, condos with a beautiful overlooking view of the city are selling like hotcakes in the Central Alberta real estate market.

“The trend since the beginning of the year is that higher density properties are the hottest commodity in the region,” Kevin said.

It’s just going to get hotter

As the summer season goes on, Kevin, who has 19 years of experience in Real Estate, is forecasting that the real estate market in Central Alberta will continue to sizzle.

“In Red Deer, Alberta, the local economy is experiencing a positive turnaround, thanks to the rise in commodity prices that started last year after the resurgence in the oil-and-gas-based economy of the city,” he said.

Red Deer has also become a magnet for individuals seeking new opportunities.

According to Statistics Canada, Alberta witnessed the largest net interprovincial migration among all provinces during the first three months of this year. Over 15,000 people from various parts of Canada, including Ontario, British Columbia, and Saskatchewan, relocated to Alberta.

Moreover, the city welcomed an additional 100,000 immigrants from different countries. Red Deer is, without a doubt, becoming a hub of diverse cultures and perspectives.

Conclusion

Kevin Lapp is optimistic about the current situation the Central Alberta real estate market is experiencing.

To get ahead of the situation, it is crucial for both sellers and buyers to stay informed about market conditions and work closely with a knowledgeable real estate professional like Lapp Realty to navigate the current supply and demand dynamics.

As the local economy in Red Deer continues to rebound and attract individuals seeking new opportunities, the real estate market in Central Alberta is expected to continue sizzling in the coming months.

If you are looking to buy or sell your property in Red Deer or Central Alberta area, don’t hesitate to reach out to us to work with the top real estate agents in the region. Visit our website at lapprealty.ca to learn more about what we can offer.

See the images below for more comprehensive Central Alberta real estate market statistics.