As we begin 2025, let’s take a closer look at the real estate market in Red Deer, reflecting on the key takeaways from 2024 and what the coming year may bring. Here’s a breakdown of the main trends and what they mean for buyers, sellers, and renters in central Alberta.
2024 Recap: Strong Demand, Limited Supply
The Red Deer real estate market experienced significant growth in 2024, with the average sales price increasing by 10%. This jump reflects a combination of strong buyer demand, limited housing inventory, and favorable economic conditions, coupled with ongoing population growth in central Alberta.
While prices rose, the number of sold residential properties decreased slightly by 1%, largely due to a shrinking inventory. With active listings dropping by 20%, the market has firmly remained in seller’s market territory for almost a year. This lack of available homes has kept buyers competing and contributed to the months of inventory dropping to just 1.6 months (down from two months).
2025 Market Trends: What to Expect
The seller’s market is expected to persist in 2025 if inventory remains tight and demand continues. Here’s what buyers and sellers can anticipate:
Rising Prices: With low inventory and strong demand, home prices are likely to increase further.
Affordability Concerns: As prices climb, affordability may become a challenge for buyers, especially at lower price points. This could also lead to a slight decline in sales volume.
Impact of Interest Rates: The anticipated interest rate cuts in the first two quarters of 2025 could ease affordability pressures, helping some buyers stay in the market.
What This Means for Buyers and Sellers
Sellers: If you’re planning to sell, you’re likely to benefit from quick sales and multiple offers, particularly at competitive price points.
Buyers: Be prepared to move quickly. Having your pre-approval ready will be essential, especially in a market where “good deals” are rare.
Challenges in the Rental Market
Renters will continue to face stiff competition as prices rise and availability remains limited. The high demand for rentals, combined with constrained inventory, underscores the importance of increasing housing supply.
A Balanced Market: What’s Needed
To bring balance to Red Deer’s market, more new listings and new homes are crucial. While immigration may slow in 2025, inter-provincial migration remains strong, adding to the housing demand. Building new homes will be essential to meeting the needs of a growing population.
Have Questions?
Whether you’re buying, selling, or navigating the rental market, understanding these trends is key to making informed decisions. If you have questions about the market or need guidance, feel free to reach out—I'm happy to help!
Here’s to a successful year ahead in Red Deer’s real estate market.