Red Deer Market Update.
Red Deer is the largest city and the hub of Central Alberta. I quick update for Red Deer will give an insight to the surrounding cities. It’s a steady market in with an increase of 9% in the average price compared to February 2023! Consistent number of sales and new listings to February of 2023 as well. With 266 active listing, we are down 17% from 320 active listing from last February and down 39% from 432 active listing in February 2022. With a continued shortage of inventory in Central Alberta, we will expect to see an increase in prices. With interest rates projected to start to come down in June, this will open up the market to more buyers with a stabilizing market and possibly further increase prices.
Conclusion.
It is a seller’s market and will continue to stay that way for the foreseeable future. That is not to say it is a bad time to purchase a home. With market rent increasing, you could be close to paying the same amount for rent that you would be owning a home in some situations. It is a much better long term situation to be making a higher mortgage payment compared to a little lower rent payment. It might cost you more but you will actually have something to show for it in equity in the long run.
For current homeowners looking to move, it’s always a good idea to see if your change in monthly mortgage payment is worth moving into a different property or remaining in your current home. If you purchased a home with a low interest rate, you will definitely want to check when your mortgage is up for renewal and how much that will change your payment. If you bought a higher-valued home with a lower interest rate, you might be surprised at how much your monthly mortgage payment as increased with a higher interest rate.
