It may be too early to say that the central Alberta real estate market has officially rebounded, but it is headed in the right direction.
In the first quarter of this year 1,432 residential units were sold, nearly double the 751 that changed hands in the first three months of 2020, according to Multiple Listing Service statistics provided by the Central Alberta Realtors Association. (CARA).
Significantly, the rebound covers a period essentially before the impact of the pandemic begins to be felt. The first health restrictions, which led to the closure of businesses, were rolled out in mid-March.
In March, 649 residential units – 80% of which were single-family homes – were sold, up from 294 in March 2020.
In Red Deer, 422 homes have been sold so far this year, up from 249 in the first three months of last year. In March, there were 186 sales compared to 101 in March 2020.
Average selling prices – which can fluctuate significantly if a number of higher priced homes sell – are also up from last year in central Alberta. The average selling price climbed to $ 339,892 this year, compared to $ 287,631 in the first quarter of 2020. In Red Deer, the average selling price is $ 328,624, compared to $ 314,491 a year ago .
CARA President Lindsay Olsen said that while sales numbers are strong, it’s a bit soon to call it a recovery.
“I don’t think we’ve made a full recovery yet,” said Olsen, real estate agent at Red Deer Coldwell Banker Ontrack Realty. “Our sales are the highest since 2007, but our prices haven’t quite recovered yet, but we’re pretty close.”
“I wouldn’t say we’re there yet, but we’re on the road to recovery,” she said, saying that an analyst who spoke at a recent event she attended estimated that it would take another year for real estate to be fully operational. bounce.
Lower interest rates help, and pent-up demand also plays a role.
While the pandemic had a huge impact on the spring sales season, 2020 started strong and ended strong, which has continued into this year.
Olsen said April sales remained positive with no signs of slowing momentum.
Communities in central Alberta are posting strong increases in sales.
This year’s sales with 2020 in brackets: Blackfalds 82 (37), Innisfail 25 (18), Lacombe 62 (40), Ponoka 27 (13), Rocky Mountain House 26 (14), Stettler 26 (12) and Sylvan Lake 108 (50).