Regina housing market continues to cool
Realtors association attributes decline to new mortgage rules
Regina's realtors association attributed a dip in local housing numbers in part to mortgage rules designed to cool off other housing markets across Canada.
Gord Archibald, the Chief Executive Officer of the Association of Regina Realtors, said the new rules have been applied to markets across the country — whether they need them or not.
"The rules should be applied on a regional basis where needed, not with a broad brush across all Canadian Markets," Archibald said. "As a result many local buyers have been unnecessarily put on the sidelines."
Two-hundred thirty-eight sales were recorded in September, the lowest since 2005 and a 19 per cent drop from last year.
Year-to-date 2,433 sales were recorded in Regina and surrounding area, a seven per cent decline from 2017. In the city, 1,957 sales occurred compared to 2,140 last year.
In Regina, 1,652 active listings existed as of the end of September, an increase of 170 from 2017.
A drop in prices which started in September 2013 continued, with the average home being listed at $277,000, down from $290,700 from 2017. The average home was listed at $303,700 in September 2013.
The Regina Association of Realtors attributed the drop to a slow demand, elevated supply levels and the impact of the federal mortgage rules.
"These rules have distorted and weakened demand locally by causing many buyers hoping to purchase a home to seek lower price ranges to qualify for a mortgage or leave the market altogether," a press release from the realtors association said.