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Money Mortgage rules hit Calgary housing market with 'collateral damage': CREA

13:07  16 may  2018
13:07  16 may  2018 Source:   cbc.ca

High-end home sales hit by news rules: report

  High-end home sales hit by news rules: report High-end home sales hit by news rules: reportIt shows that the median house price at the top end of the market has dropped only about $6,000 to $3.52 million year over year in the first quarter of 2018. But that’s about where it’s expected to stay through the first quarter of 2019.

Housing sales in Canada were down significantly this year, and Calgary was one of the cities leading the drop, according to a new report from the Canadian Real Estate Association ( CREA ). "This is exactly the type of collateral damage that CREA warned the government about.

Calgary Real Estate Market Update | April 2018 - Продолжительность: 2:06 Calgary Realtor - Real Estate by The Howard Team 168 просмотров.

A house for sale in Calgary.© Robson Fletcher/CBC A house for sale in Calgary.

Housing sales in Canada were down significantly this year, and Calgary was one of the cities leading the drop, according to a new report from the Canadian Real Estate Association (CREA).

"This year's new stress test has lowered sales activity and destabilized market balance for housing markets in Alberta, Saskatchewan and Newfoundland and Labrador," said Gregory Klump, CREA's chief economist, in a release Tuesday.

"This is exactly the type of collateral damage that CREA warned the government about. As provinces whose economic prospects have faced difficulties because they are closely tied to those of natural resources, it is puzzling that the government would describe the effect of its new policy as intended consequences."

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Mortgage rules hit Calgary housing market with ' collateral damage ': CREA . The total number of house sales in April was 1,518 — down from 1,900 the previous April, a drop of more than 20 per cent. That's 25 per cent below long-term averages, the Calgary Real Estate Board (CREB) said in its latest

Mortgage rules hit Calgary housing market with ' collateral damage ': CREA . A new report from the Canada Mortgage and Housing Corporation (CMHC) says there's been too much building, meaning it'll continue to be a buyer's market .

Calgary sales down nearly 20 per cent

National home sales fell 2.9 per cent from March to April, and were down 13.9 per cent from this time last year, the CREA reported.

In Calgary, sales in the first quarter of 2018 were down 18 per cent from last year and 24 per cent below long term averages, according to the Calgary Real Estate Board (CREB).

Calgary real estate broker Len Wong said the drop was influenced by 2017's numbers, which he said started the marketplace off on the wrong foot, coupled with the weather, higher lending rates and the new mortgage rules.

"As of Jan. 1, for example, if you had put 20 per cent down, you qualified for, let's say $500,000. As of Jan. 2, you would have qualified for $400,000 to $420,000," he said.

"That really put a sticker shock and I think sent a chain reaction into the marketplace. I think also Calgary's economy has stabilized but it hasn't gone up, it hasn't gone down, so I think there was no urgency to go out there and buy."

Average house price in Canada fell 11% in past year, CREA says

  Average house price in Canada fell 11% in past year, CREA says The average price of a Canadian home declined by more than 11 per cent in the 12 months up to April, the Canadian Real Estate Association said Tuesday. The realtor group said the number of sales plunged by 13.9 per cent compared with the previous year's level, and fell to the lowest April showing since 2011.April is typically a booming month for home sales, as warmer weather spurs sales. But listings slowed from March's level during the month, coming in 4.8 per cent lower. It was the slowest April for new listings in nine years, CREA said.

Mortgage rules hit Calgary housing market with ' collateral damage ': CREA . It predicts Calgary will see home prices increase by 2.5 per cent in 2017 to an average 2,500. Royal LePage president Phil Soper said there have been steps to mitigate what he calls "regional extremes" in housing

Average house price in Canada fell 11% in past year, CREA says : High-end home sales hit by news rules : report High-end home Sellers blame new mortgage rules as average Canadian house price falls 10% in past year . Canadian home sales expected to fall 11 % this year | CBC News - www.cbc.ca.

Wong said he predicts the market will level off in May, and should pick up a bit in the third and fourth quarters. He also suggested sellers ensure they're pricing their homes right to ensure they stand out from the crowd.

"I think it's really critical to make sure sellers understand it's a buyer's market."

Too early to panic, says CREB economist

CREB chief economist Ann-Marie Lurie said she'll be waiting to see if the oversupply in the market goes down.

"The thing that I really look for is not just that sales are slower, but let's see if inventory or the actual product coming on to the market, if that reacts to it," she said.

Lurie said it's too early to say if the slowdown is a significant shift from what realtors had expected, and that the traditionally busy months of May and June should give a stronger indication.

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    Here’s why real estate stocks are a bad investment in 2018Steps taken by federal and provincial governments and the Office of the Superintendent of Financial Institutions, Canada’s banking regulator, are curbing new demand and forcing sellers to remove their listings. The end result of these interventions may be more significant than what the government had originally intended, but these moves have slowed down the pace of price growth and the rampant speculation considerably.

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