Government policy and interest rates put pressure on sales

Dated: 12/24/2018

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Government policy and interest rates put pressure on sales

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The B-20 stress test tightened its grip on housing markets across Canada in November, as home sales recorded on Canadian MLS Systems fell by 2.3 percent, on top of the decline in October of 1.7 percent. While sales this fall are up from the spring, they remain below monthly levels posted from 2014 through 2017, says Gregory Klump, chief economist for the Canadian Real Estate Association (CREA).

“The decline in homeownership affordability caused by this year’s new mortgage stress test remains very much in evidence,” says Klump. “Despite supportive economic and demographic fundamentals, national home sales have begun trending lower. While national home sales were anticipated to recover in the wake of a large drop in activity earlier this year due to the introduction of the stress test, the rebound appears to have run its course.”

On a year-over-year basis, national sales fell 13 percent, while the decline in sales in Calgary in November were 16 percent lower than in November 2017.

Here are the key statistics for Calgary, year over year and year to date, as compiled by CREA.

Nov. 2018                              Nov 2017                        YTD 2018                 YTD 2017

Sales                                     1,458                                      1,742                              19,549                       22,569
New listings                         2,487                                       2,702                              42,794                      42,329
Average price                     $431,195                               $446,349                      $462,043                    $467,807
Sales to listing ratio               47.0                                       54.4                                45.7                            53.3
Dollar volume                $628,700,000                      $777,500,000            $9,032,500,000                10,557,900,000

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Steven Axford

Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....

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