Source: https://mailchi.mp/7d6af5d9be0c/the-owl-albertas-housing-resale-market-slowed-in-2018?e=6f1f3fb3a5
The value of homes sold in Alberta fell 9.6 per cent in 2018, according to year-end statistics provided by the Alberta Real Estate Association. Total sales through the MLS® systems of real estate boards fell from $22.8 billion in 2017 to $20.6 billion in 2018.
The number of homes sold was also down. There were 53,190 homes sold in 2018 compared to 57,325 in 2017. Another indication of last year’s more lethargic resale market is the ratio of sales per new listing. It fell from 0.49 in 2017 to 0.45 in 2018.
In terms of price, the average fell close to 2.6 per cent, going from $397,871 per home sold in 2017 to $387,460 in 2018.
Several factors help explain the slowdown, including ongoing anxiety about the provincial economy, higher mortgage rates (the Bank of Canada raised interest rates three times in 2018) and stricter federal rules regarding mortgage financing.
All of this results in 2018 being characterized as a “buyer’s market.” Going forward, this should appeal to people considering a move to Alberta and help counter the dampening effects of higher interest rates and other more onerous stress tests.
About Don Cholak
