Buyers are now contending with new mortgage rules(Stress Test)and higher interest rates,and these are a couple of the reasons why home sales are down as we wait for the economy to recover. Calgary sales totaled 1,518 units in April, which is 20 per cent below last year and 25 per cent below long-term averages.
Inventory levels in April totaled 7,324 units. This is a 32 per cent rise over last year, but well below the monthly high of 10,129 units recorded in 2008. Supply compared to demand has risen, but city-wide prices have remained relatively stable, totaling $436,500 in April, a monthly and annual gain of 0.21 per cent. The average Days On Market for SOLD homes in April was 47 days.
“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” said CREB® chief economist Ann-Marie Lurie.
So far this year, apartment and attached sales have eased to levels that are comparable to 2016. However, rising supply in both markets have pushed months of supply to the highest levels recovered over this four-month period, which is preventing any significant shifts in pricing trends.
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