October was a strong month for the real estate market here in YYC. However, in November conditions turned back to previous trends. CREB® writes, “year- over-year monthly sales totalled 1,227 units, which is nearly three per cent lower than last year and 17 per cent below long-term averages.”
As we reported on back in November, major changes were made to Canada’s housing rules last month. The changes were aimed at helping Canadians keep from taking on larger mortgages than they could economically handle during a time when interest rates were incredibly low. For more information on this, check out an article on it HERE.
These changes may be helpful in the long run for people, but right now they are stopping many people from entering the market. This is one of the things that made November’s real estate market slow down again. CREB® chief economist Ann-Marie Lurie notes, “November was the first full month with CMHC’s new lending rules in effect. As suspected, the gains in last month’s sales were temporary. Stringent conditions for borrowers are converging with the current economic climate and weighing on demand.”
Supply had levelled out a little in October, but November caused supply levels to become high once more. Benchmark prices were at $498,300 for detached homes. CREB® notes that this is the first time that the benchmark monthly price has dipped below $500,000 since 2014.
CREB® president Cliff Stevenson writes, “again, it can’t be overstated how important it is for housing consumers to keep asking questions and drilling down on what’s happening in their specific area. This kind of exploration and learning is how good real estate decisions get made in any market.”
If this all seems overwhelming for you, please get in contact with us here at Team Ken Richter! We would love to walk you through things and help you make the decision that is right for you. We are huge advocates of how great YYC is, so we want to help you find a place to call home here.
Best of luck in this cold weather!
Your Real Estate Professional,