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2024 Year in Review: Is It a Good Time to Buy, Sell, or Hold in Central Alberta?
As 2024 draws to a close, Central Alberta’s real estate market has painted a dynamic picture influenced by local, national, and global factors. Let’s take a closer look at how the year unfolded across Red Deer, Blackfalds, Lacombe, and surrounding areas to assess whether now is the right time to buy, sell, or hold your real estate investments.
Market Overview
- Total Transactions: Central Alberta recorded 2,903 property sales, showcasing an 8% increase year-over-year, driven by robust activity in the detached and semi-detached segments.
- Inventory Trends: The market tightened with only 279 homes available on average during the year, a 6% decrease from 2023, reflecting a strong seller’s market.
- Price Performance:
- The average sale price across the region rose to $384,394, marking a 6% increase from last year.
- Detached homes in Red Deer achieved an average price of $449,126, growing by 5.5% YoY, while semi-detached homes rose by 9% YoY.
- Days on Market: Homes moved quickly, with properties averaging just 35 days from listing to sale, down from 42 days last year.
Regional Highlights
1. Red Deer: Central Alberta’s Anchor Market
- Sales Volume: 1,759 transactions accounted for over 60% of all sales in the region.
- Price Trends: The average residential price increased by 5.5%, reaching $449,126.
- Market Conditions: With tighter inventory and quick sales, competition was particularly fierce in family-oriented neighborhoods.
2. Blackfalds: The Rising Star
- Sales Growth: Blackfalds saw an 18% increase in transactions, driven by strong demand for new developments and semi-detached homes.
- Average Price: Detached home prices surged to $427,956, up 9% YoY.
- Key Insights: The affordability of row housing attracted first-time buyers, while new builds attracted young families.
3. Lacombe: Stability Amid Growth
- Price Performance: Residential prices rose by 8%, with an average price of $433,848.
- Demand Trends: Homes in Lacombe benefited from steady demand due to its blend of charm and proximity to major centers.
Buying, Selling, or Holding: What Should You Do?
For Buyers
- Challenges: Limited inventory and higher prices in key markets like Red Deer and Blackfalds can make purchasing competitive.
- Opportunities: New construction in Blackfalds and affordability in row housing provide options for first-time buyers.
Verdict: Act quickly, focus on value-driven neighborhoods, and leverage professional advice to navigate the competition.
For Sellers
- Advantages: With average prices rising and inventory tightening, sellers enjoyed significant advantages in 2024.
- Key Segments: Properties in family-friendly areas, particularly detached and semi-detached homes, garnered strong interest.
Verdict: This is a prime moment to sell, especially for properties in high-demand neighborhoods or move-in-ready condition.
For Holders
- Reasons to Hold: Price appreciation is projected to continue into 2025, and rental yields remain robust due to low vacancy rates across Central Alberta.
- Future Outlook: Investors can expect steady long-term gains as supply constraints and buyer demand persist.
Verdict: Holding remains a strong strategy for maximizing future equity and rental returns.
What’s Ahead in 2025?
- Market Trends:
- Prices are expected to moderate, with continued growth in high-demand segments.
- Supply may increase marginally with new construction projects in Blackfalds and Red Deer.
- Potential Risks: Rising interest rates could temper buyer activity, but underlying demand will likely sustain positive momentum.
Conclusion
With over 2,903 properties sold this year so far, Central Alberta’s real estate market remains vibrant and full of opportunities. Whether you’re looking to buy, sell, or hold, partnering with a knowledgeable local realtor will be key to navigating 2025’s landscape successfully.
All Data was pulled from Matrix Pillar9.
