Have prices in the Central Alberta Real Estate Market Dropped?

blake_king_real_estate

realty_blake_kingSo many people have ask me if real estate prices have dropped in Central Alberta since oil prices started their decline. People imagine a slower real estate market is directly related to pricing. People assume if less homes sell, prices must also drop – but that isn’t necessarily true. Because of the confusion, and because every local market is different, I decided to investigate.

Below i’ve charted the average price of homes in Central Alberta over the last five years and the last 2.5 years to compare.

local_stats_red_deerI charted average home prices in Central Alberta over the last five years and measured them two ways. Compare the average home price sold in the month of January 2011 with September 2016  and prices have increased 21.9%. This measurement gives a less accurate outlook because one individual month can be skewed by a few higher priced homes selling. Comparing the average sale price over a 5 month period, 5 years ago and the average over the last 5 months should give us the best representation of price change. Measuring this way showed an average price increase of 17.4%

June 2014 is the month oil prices started declining world wide (chart courtesy of InfoMine.com below) and people really want to know what’s happened since. If you look at the chart below you’ll see the price

blake_king_realtorof homes sold in Central Alberta has practically remained the same since June 2014. Working out the average like we did over the 5 year span we fin prices have actually risen 0.06%. We should always hope for increases exceeding 1% each year but considering our economy, anything better than a drop is excellent.

oil_price_decrease

Courtesy of InfoMine.com


To learn more about the Red Deer and Central Alberta real estate market contact local Realtor Blake King
. Blake continually monitors local stats so he can help his client make the most advantageous buying or selling decisions. 

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About the Author

Blake King
Having lived in Red Deer my entire life and having experience in many avenues of real estate I offer enormous value to my clients.