Changes to the lending industry and a challenging economic recovery are having a great impact on sales: CREB

Mario ToneguzziThe slowly recovering Alberta economy continues to weigh heavily on Calgary’s resale housing market.

In officially releasing its monthly MLS statistics for April on Tuesday, the Calgary Real Estate Board said changes to the lending industry and a challenging economic recovery are having a great impact on sales in the city.

For May, there were 1,518 sales, which was down 20.11 per cent from a year ago.

CREB said supply levels have not adjusted to the weaker demand and that’s preventing price recovery.

“Slower sales do not come as a surprise, given the economy has not yet improved enough to offset the impact of changes in the lending industry,” said Ann-Marie Lurie, CREB’s chief economist. “While the rising inventories are being monitored, prices have remained relatively flat as gains in some areas of the city have been offset by declines in other areas.”

CREB said the benchmark price in April – which represents typical properties sold in the housing market – was up 0.21 per cent from a year ago to $436,500. However, the median sale price dropped by 3.15 per cent to $431,000 and the average MLS sale price declined by 3.31 per cent to $478,596.

Ann-Marie Lurie, CREB’s chief economist.

For the month, new listings increased by 8.32 per cent from last year to 3,569 and the inventory of homes for sale on the market rose by 32.73 per cent to 7,324.

Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various

capacities, including 12 years as a senior business writer.


housingThe views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.

You must be logged in to post a comment Login