The Calgary Board of Real Estate notes in their January report, "as oversupply continues in Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December." This summary of what happened in the final month of 2018 paints a bleak picture of December, which hopefully ended a difficult year in the real estate; though still better than others. Our hopes are that we see even more improvement in 2019!
Here are the highlights from their statistics summary:
December sales totalled 794 units. This is a 21% decline compared to December of 2017.
Year-to-date sales in the city totalled 16,144 units. This is 20% below long-term averages and about 14% less than in 2017.
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The stats are in for the month of September thanks to CREB (The Calgary Real Estate Board).
Here are the highlights:
September sales activity totaled 1, 272 units, a 13 per cent decline since last year. This is far below long-term averages.
There were decreased sales in all product types (detached, row, apartment, semi-detached), but it was the worst for the detached market.
CREB® chief economist Ann-Marie Lurie says: "Calgary's economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand. At the same time, supply levels continue to remain high, resulting in persistent oversupply and
The Bank of Canada has decided to hold interest rates at their current rate for September, though a rate hike in October seems likely.
Global News writes, "despite the uncertainty around NAFTA, the BoC appeared to take comfort in the fact that business investment and exports are increasingly stepping in as engines of economic growth. Meanwhile, the bank said, the housing market has begun to stabilize after higher interest rates and changes in housing policy like the tighter federal mortgage rules that kicked in on January 1st, 2018.Canadian families are also adjusting to higher interest rates, with the household debt-to-income ratio beginning to edge down, the bank said. At the same time, a healthy job market and higher wages are helping to
It is property tax season! If you own a home and are confused about what exactly property taxes are, how they are calculated, or how to pay them, read on!
First off, there are some incredibly important reasons why we have to pay taxes. Oliver Wendell Holmes Jr. once said, "taxes are the price we pay to live in a civilized society." Paying taxes are not just your legal duty, but your civic duty. Taxes help Canadians receive the services that make Canada great, such as schools, courts, roads, parks, hospitals, garbage collection, sewer maintenance, clean drinking water, public transit and more. In 2013 it was reported that the average Canadian receives about $41,000 in public services each year. This would not be possible without everyone
Sales are continuing to struggle in this tight economy. Paired with stricter lending rules that are making it more difficult for people to get approved for a mortgage following a stress test, the Calgary market is not thriving. Supply levels have also not changed, which is putting more pressure on sale prices. Despite all of this, we are optimistic that now that the snow has melted and the spring market is in full swing, things will start to get better.
CREB® chief economist Ann-Marie Lurie says, "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. While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas
The Calgary housing market in March went exactly as expected. Unfortunately, due to economy not yet being fully recovered and due to stricter lending rules, sales were slow and inventory rose. First quarter sales totaled 3,423 units, which was 24 per cent below long term averages and18 per cent below last year's stats. Months of supply have reached four months.
The benchmark price for a detached home was $503,800, which may have been 3.6 per cent below highs before the recession, but was one per cent above the lows recorded during the recession. So, there is very modest improvement.
"Economic conditions are slowly improving, but it has not been enough to outpace the current impact of higher lending rates and more stringent conditions,” said CREB®
The Calgary Real Estate Board held its annual conference where the forecast for what the Calgary real estate market will look like this year took place. These forecasts are created by gathering data from the previous year, analyzing year over year trends, applying economic variables and evaluating any recent changes to the housing industry. This report gives a reliable prediction of what the market will look like in 2018, lest there be any major, unforeseen events.
We highly recommend visiting www.creb.com to explore all the resources they have available to make you an informed buyer, seller or investor. You can also find a more in-depth report on the forecast on their website, but here are some of the highlights you need to know specifically:
The new mortgage rules that we have been warning you about have finally arrived. Global News writes that as of "January 1st, 2018, Canadians getting, renewing or refinancing a mortgage might have to prove that they would be able to cope with interest rates substantially higher than their contract rate." This stress test is to ensure that anyone applying for a mortgage could handle that mortgage, no matter what the interest rates jump to.
While this may not seem like a major deal, a recent "analysis by the Bank of Canada suggested... some 10 per cent of Canadians who got an uninsured mortgage between mid-2016 and mid-2017 would not have qualified under the new standards" (Global News). Even those able to put a full 20% down or more on their future home
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