Calgary sales lower as mortgage rules bite

Home sales in Calgary were back on their recent subdued trend in November following a stronger month in October.

Calgary Real Estate Board figures show 1,227 units were sold in November, a 3 per cent decline from October and 17 per cent below long-term averages. Inventory increased slightly as lower supply was exceeded by lower sales.

“November was the first full month with CMHC’s new lending rules in effect,” said CREB chief economist Ann-Marie Lurie. “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.”

Benchmark prices in Calgary remined under pressure with a 0.6 per cent month-over-month decline to $436,200, almost 4.1 per cent lower than a year earlier.

For the first time since 2014, the benchmark price for single-family homes fell below $500,000 ($498,300) however, CREB says that resales of detached homes have fared better than most.

“These monthly figures aren’t a big surprise given the dynamics of our market right now,” said CREB president Cliff Stevenson. “We’ve seen pockets of sales activity in certain areas, but also lots of months where the expectations between buyers and sellers just aren’t matching up. November was one of those months.”

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