Calgary’s resale housing market fell just short of setting a new peak for MLS sales during the month of September as the city recorded its highest level of transactions since 2005 and the 18th consecutive month of year-over-year gains in MLS sales and 32nd consecutive month of annual price hikes.

The long-term potential for Calgary is very good with a lot of positive factors that are influencing our market. There are still people moving to Calgary, we still have jobs and all of that is translating into improved demand.

The market now is much more balanced than it was in the spring, led primarily by the increase in inventory of single-family homes. So there’s more choice and more options. People have some time to make decisions although we’re still seeing competing offers in certain areas and market segments.

Fixed mortgage rates have seen a bit of an increase recently. This was due to the spike in bond yields caused by improving US economic indicators. The Canadian bond market tends to move in sync with the US bond market.

Bond yields have moderated at 1.57 since the 20+ point spike, from 1.51 50 1.73, earlier this month. Lenders typically like to see a 150 basis spread between yield & their 5 year fixed rate, so at 1.57 rates should be in the 3.07 range. We have seen many lenders pulling rate specials with some even increasing rates in the last couple of weeks. Fixed rates should however stabilize and further increases are unlikely at this time.

Variable mortgage rates continue to remain stable, with the Bank of Canada continuing to hold their overnight rate. With the increase in fixed rates, the discount offered with a variable increases, making them a great deal for well qualified borrowers.