‘More stringent conditions’ cited as single-family resales slow
The number of single-family homes that changed hands through Calgary’s resale market this past March eased 27 per cent from the same month in 2017.
There were 848 sales of previously owned single-family homes in the city last month, dipping from 1,171 year over year, says the Calgary Real Estate Board.
At the same time, resale on homes of all kinds decreased to 1,374 transactions from 1,890.
“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’s chief economist AnnMarie Lurie.
The Office of the Superintendent of Financial Institutions rolled out revised guidelines for residential mortgage writing practices and procedures, starting this past Jan. 1.
This includes a new “stress test” for uninsured mortgages that requires the borrower to qualify at the higher figure between the fiveyear benchmark rate published by the Bank of Canada and two per cent above the contracted mortgage rate.
The busiest areas for singlefamily resale in Calgary last month were on its south ends. Areas CREB defines as south Calgary and southeast Calgary carried the pace with 187 and 146 deals, respectively. North Calgary and northwest Calgary followed with 118 apiece. Beyond that, there were 96 in the city centre, 81 apiece in northeast Calgary and west Calgary, and 22 on the east end of the city.
“We are entering the most active quarters in the housing market with more inventory, which could create some price fluctuations,” Lurie says. “However, the improving economy is expected to prevent overall prices from slipping by significant amounts.”
Supply of resale single-family homes last month soared 30 per cent past the mark of March 2017. It rose to 3,063 from 2,324 year over year, says CREB.
This was helped by an uptick in new listings. There were 1,871 additions to the single-family resale market last month, up four per cent from 1,796 in March 2017.
South Calgary and northwest Calgary led the new listings climb, with 345 and 278, respectively, last month.
For prices last month, singlefamily homes were similar to March 2017.
The benchmark price was $503,800, inching up less than one per cent from $500,400 a year earlier.
Benchmark prices are that of a typical home based on a formula that uses various factors to ensure
The improving economy is expected to prevent overall prices from slipping by significant amounts.
accurate comparisons.
The priciest part of Calgary last month was west Calgary, where the benchmark was $731,200, says CREB. This marked a two per cent rally from March 2017.
The strongest price growth of any end of Calgary last month came from the city centre, where its benchmark of $698,000 was up 3.5 per cent year over year.
Most of last month’s singlefamily home sales were made in the $400,000 to $449,999 price range, says CREB. This bracket recorded 139 transactions, which is down from 175 a year earlier.
In March 2017, the $450,000 to $499,999 range paced sales with 189.
“The market today is better than what we experienced at the peak of the recession,” says CREB president Tom Westcott. “You can find good value if you’re looking to buy a home, and you can also get good value if you’re selling.
“Being well-informed, in any economic condition, is the key, because there are differences in the market depending on what type of property it is and where it is located,” he adds.