Calgary Real Estate Market

There was further stabilization of the Calgary housing market in September. Sales improved for the third consecutive month while a build-up of supply eased with fewer new listings. Calgary Real Estate Board’s figures released last week show that condo apartment sales were up 16% year-over-year while detached homes gained 4.8%.

According to Ann-Marie Lurie of CREB, “Price declines have likely brought some buyers back into the market.” We saw improvements in the market continuing to be driven by homes priced below $500,000.”

While we all know the downturn is far from over, there was a modest rise in housing demand and it does feel good to have some good news.

Canadian Mortgage Market

As for rates, last month we saw a slight increase in bond yields, driving fixed rates ever so slightly higher. That being said, bonds have taken a dip again over the last week, so rates have stabilized again. Could these low rates be adding to fuel to Calgary Real Estate Market?

Possibly, and we don’t see these low rates going anywhere soon. The US economy, as predicted earlier in 2019, is showing signs of slowing. This is causing the US Bond Yields to slip, and the Canadian Bond Yields, historically, follow in lock-step. All good news for buyers in the coming weeks and months.

The Election

Then there is the election – the wild card. There are so many campaign promises being tossed around its hard to keep track. There is one that should be at the forefront of anyone’s mind who is in the Real Estate industry though: what are the various parties going to do to make it easier for buyers to get into the Real Estate Market in this country?

The stress test. The decrease to a maximum amortization of 25 years for insured mortgages and 30 years for conventional mortgages. The lenders requiring more and more documents and files subject to more and more scrutiny. Its a wonder any homes are selling.

Andrew Scheer promised to get rid of the stress test for homeowners renewing their mortgage while “lowering the bar” for first-time homebuyers, allowing more Canadians to enter the market. He also pledged to increase the maximum amortization for insured mortgages to 30 years, from 25.

As industry professionals, we need to ensure we understand what our candidate of choice will do to ensure we have a strong, healthy economy in which Canadians can achieve the dream of homeownership. Do your homework!