Central Alberta - Market Highlight

- 287 properties currently for sale (+4% increase since early August).
- 24% decline in sales compared to the first two weeks of August.
- 17% sales increase in August compared to July.
- 4% price increase from July to August.
- 35 days average time on the market (slight increase).


- Detached homes in Red Deer remain the most sought after, especially in family-friendly areas with good schools and parks.
- Buyer sentiment: Buyers are becoming more price-conscious, and homes priced competitively are selling faster.

General Canadian Real Estate Updates

- Insured Mortgage Cap Increase: Effective December 15, 2024, the cap for insured mortgages will rise from $1 million to $1.5 million, reflecting current market prices and allowing more buyers to qualify with less than a 20% down payment.
-Expanding 30-Year Amortization: First-time buyers and new-build purchasers can access 30-year amortizations on insured mortgages starting December 15, 2024, reducing monthly payments and encouraging new housing starts.
- Bank of Canada Rate Cut:The overnight rate dropped to 4.25%, which could lower mortgage rates, potentially increasing buyer activity and easing affordability concerns.
- Inflation Impact: While inflation is moderating, it continues to impact construction costs and home prices, particularly in major cities across Canada. Builders are facing higher material costs, affecting the availability of new homes.

Other Key Market Insights

- Housing Supply Shortages: Across Canada, the lack of housing supply remains a critical issue, with an increasing push for governments to address zoning and development barriers. This shortage is especially felt in growing areas like Central Alberta.
- First-Time Buyer Programs: The Federal First-Time Home Buyer Incentive continues to offer interest-free loans on a portion of the home’s purchase price. Coupled with rising insured mortgage caps, this could make homeownership more accessible in early 2025.
- Foreign Buyer Ban Expiration: The Foreign Buyer Ban, which was enacted to cool the housing market, is set to expire in early 2025. Depending on how the market performs, this could either be renewed or allow international investors back into the market, potentially raising competition for local buyers.