Residential home sales declined in February, but a decline in new listings helped keep prices steady this month. Sales totaled 1.094 units in February, 18 per cent below last year’s activity. After the first two months of the year, sales activity remains well below longer-term averages.
“Housing market conditions are still adjusting to rising lending rates and changes in lending requirements. This process is expected to be bumpy, with demand adjustments leading the changes,” said CREB® chief economist Ann-Marie Lurie. “However, it is important to remember that it is early in the process and the impact on prices will ultimately be dependent on the supply response.”
A decline in new listings was not enough to prevent further gains in inventory levels, but it offset some of the impact of slower sales activity. In the detached sector, one of the largest declines in sales occurred in the $600,000 – $999,999 range, while this price range also recorded gains in new listings.“This is a market where the fundamentals of a sound pricing strategy need to be understood by sellers. At the same time, savvy buyers typically have a clear understanding of how much of a mortgage they can get,” said CREB® president Tom Westcott.
“With all the recent changes, potential purchasers should be obtaining pre-approvals so they understand exactly what they can afford prior to making an offer on a home. It also provides them flexibility in this market.”
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Bruce Voigt – REALTOR® C.C.S.
RE/MAX Rocky View Real Estate