A year over year look at December market activity in Red Deer reveals some important shifts in inventory levels, buyer behaviour, and overall market balance. While pricing has remained relatively stable, the underlying dynamics of the market have clearly changed.

Inventory Growth Signals a More Competitive Market

In December 2024, Red Deer had 140 active listings. By December 2025, that number increased significantly to 197 active listings. This nearly 41 percent jump in available homes gives buyers more choice and reduces the urgency that was felt a year earlier. Interestingly, the number of new listings entering the market stayed almost identical year over year, with 63 new listings in December 2024 and 64 in December 2025. This tells us the inventory increase is not coming from a surge of new sellers, but rather from homes taking longer to sell and remaining on the market.

For sellers, this means competition has increased. Homes that are not priced correctly or properly prepared are more likely to sit longer as buyers compare options.

Sales Activity Softens Despite Similar New Supply

December 2024 recorded 82 sales, while December 2025 saw sales drop to 71. That decline suggests buyer demand has softened slightly, even though roughly the same number of new listings came to market. This shift often points to buyers becoming more selective. Factors such as affordability concerns, interest rate fatigue, or economic uncertainty can all cause buyers to slow down, take more time, and negotiate harder.

Days on Market Reflect Buyer Caution

One of the clearest indicators of a changing market is the increase in average days on market. In December 2024, homes sold in an average of 36 days. In December 2025, that number jumped to 49 days. This longer selling timeline reinforces the idea that buyers are no longer rushing. They are booking more showings, asking more questions, and feeling comfortable walking away if a home does not meet expectations on price or condition.

For sellers, patience and strategy matter more than ever. Strong presentation, professional photography, and accurate pricing play a major role in avoiding extended market time.

Prices Hold Steady With Modest Growth

Despite higher inventory and fewer sales, the average price increased from $390,000 in December 2024 to $399,000 in December 2025. This modest rise suggests that values have remained resilient, likely supported by steady underlying demand and limited distressed inventory. Rather than a sharp correction, the market appears to be normalizing. Price growth is slower and more measured, but still positive.

What This Means Moving Forward

Overall, December 2025 reflects a market that has shifted toward balance. Buyers have more leverage than they did a year ago, while sellers must be more intentional to achieve strong results. For sellers, success now depends on preparation, pricing, and marketing rather than simply listing and waiting. For buyers, the current conditions offer more choice, more time, and more room for negotiation compared to last year. As we move into the new year, watching inventory levels and buyer confidence will be key indicators of whether this balanced trend continues or shifts again.

If you would like a breakdown of how these numbers apply specifically to your neighbourhood or home value, a personalized analysis can make all the difference.

Frequently Asked Questions

Is the Red Deer real estate market slowing down?
The market is not slowing down dramatically, but it is shifting. Higher inventory levels and longer days on market show that buyers are taking more time and being more selective. This is a move toward a more balanced market rather than a downturn.

Does higher inventory mean prices are going to drop?
Not necessarily. Even with more active listings, the average price increased year over year. This suggests pricing is stabilizing rather than declining, especially for well priced and well presented homes.

Is it still a good time to sell a home?
Yes, but strategy matters more than before. Homes that are priced correctly, professionally marketed, and show well are still selling. Sellers need to be realistic and prepared for more competition and slightly longer selling timelines.

What does a longer average days on market mean for buyers?
Buyers have more flexibility than they did a year ago. Longer days on market often mean more time for due diligence, stronger negotiating power, and less pressure to make rushed decisions.

Should buyers wait for prices to come down further?
Trying to time the market is difficult. While price growth has slowed, values have remained stable. Buyers should focus on finding the right home at the right price for their situation rather than waiting for a significant price drop that may not happen.