Calgary home sales drop 3% in November as new mortgage rules bite
Average home price slips to $436,200, 4.1 per cent below last year's levels
House sales in Calgary dipped by three per cent in November compared to the same time last year — after taking a hit from not just the economic downturn, but new federal mortgage lending rules, according to the Calgary Real Estate Board (CREB).
There were 1,227 total unit sales last month — 17 per cent below long term averages.
"There have been mortgage rule changes which can also influence demand in the market," said Ann-Marie Lurie, chief economist with CREB.
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On Oct. 17, the federal government launched a new stress test for any insured mortgage when a buyer puts down less than 20 per cent of the home price up front.
Lurie also cites a typical end-of-year sales slowdown — and the lingering economic downturn for the impact on sales activity and prices.
"We need to work through some of the excess inventory."
The average home price across the city slipped to $436,200 in November, a 0.6 per cent decline over the previous month, and nearly 4.1 per cent below last year's levels.
Detached homes slumped to $498,300, making it the first time since early 2014 homes were priced under the benchmark of $500,000.
The apartment sector saw a more dramatic 6.8 per cent price drop to $271,000, compared to last November, due to new home construction and pressures from the rental market.
The full Calgary monthly stats breakdown was released Thursday.