Red Deer Real Estate Market
Red Deer Real Estate Market in 2021
In 2021, Red Deer's real estate market made an incredible breakthrough. In December 2021, there were 122 transactions in Red Deer for all single-family, half-duplex, townhouse/duplex, and condo-type homes, making it one of the busiest December months in decades! This represents an almost 40% increase over December 2020, when there were 88 purchases.
Sales in Red Deer during 2021 totaled 1891, representing a 50% increase from sales in 2020, which were 1262. The average number of days on the market is now 77.
There is just three months' worth of inventory on the market, which is unusual given the time of year when sales generally decrease. In comparison, there were more than 7 months of inventory on the market at this time last year.
Projection to 2022
After such a successful year, many people are wondering what the Red Deer real estate market will look like in 2022. The real estate prognosis for 2022 seems to be solid and hopeful!
A lack of available listings, along with high demand from buyers, is likely to push up property sales and prices in 2022. Estimates differ among housing market experts, but the Canada Mortgage and Housing Corporation (CMHC) predicts a 5% increase in home prices in 2022.
While property prices in Red Deer may continue to increase, availability is scarce – a pattern that is replicated in markets across Canada.
Along with an exceptional supply shortage, the following variables will have a significant impact on Canadian housing markets in 2022:
- If firms continue to postpone return-to-work policies and there is still a heavy emphasis on working remotely, the COVID-19 Omicron model may create a boom in house sales in 2022. Also, with potential travel and recreational limitations on the horizon, clients may spend less money on leisure and focus more on investing in a modification to their present house, investing in a revenue property, and adding a recreational home to their real estate portfolio.
- Depending on how the epidemic evolves, demand may be further strained, and purchasers may face increasing competition from significant international immigration. Many homeowners from Ontario and British Columbia relocated to Alberta during the high inter-provincial migration trend that occurred in 2021. Because Red Deer's costs remained inexpensive, more people moved here from out of town/province.
- Less congested cities and communities may offer purchasers more affordability as well as liveability aspects such as more space. Housing supply should be increased in order for these locations to keep their enticing attributes and relative market balance. Without new houses and in the face of increased demand, those regions' situations might deteriorate further.
- While the Bank of Canada has laid the groundwork for a tightening cycle, mortgage rates have already begun to rise. First observed in the spring of 2021, and then again in recent months. Interest rate increases may make it more difficult for new purchasers to enter the market this year, even if activity remains robust. Mortgage rate rises are now solely affecting monthly payments.