Falling prices raise number of home purchases

Home sales in Calgary received a November jolt as buyers snapped up lower-priced properties across the city.

Calgary Real Estate Board figures show total sales jumped 15 per cent year-over-year last month, to 1,411 units, with all categories showing gains.

Sales were highest on homes priced between $300,000 and $400,000, CREB said.

“The combination of improved confidence and pending mortgage rule changes have likely contrib- uted to the stronger sales activity this month,” CREB chief economist Ann-Marie Lurie said.

New federal mortgage rules introduced in October will make it more difficult for homebuyers to qualify for uninsured loans, affecting those with down payments of 20 per cent or more.

Other changes put greater onus on consumers to prove they can withstand future interest rate hikes.

“Moving forward, we will continue to monitor shifts in demand as improving economic conditions should help offset the impact to the housing market after the new lending policy comes into force in January,” Lurie said.

Sales of detached homes were 13 per cent higher than November 2016, at 875 units, with year-todate sales in the category up 5.5 per cent. The median price declined four per cent from a year earlier, to $465,000.

Sales of attached units jumped 23 per cent from a year earlier, to 313 units, while apartment sales totalled 223 units, an increase of 14 per cent.

CREB said while the overall ratio of sales to new listings improved last month, the number of properties on the market, particularly in the apartment condo category, remains “elevated.”

“This continues to weigh on prices,” it said. The average sale price of an apartment condo fell seven per cent in November to $277,000. The median price was down two per cent at $250,000.

Total home sales are up six per cent from a year ago, at 17,880 units, the CREB said. The median price of all properties sold last month was down 3.3 per cent, at $412,000.