The Canadian Real Estate Association Records show that the number of listings across Canada has increased since the beginning of the year, and peaked at 80,000 in July. This has set a brand new record for the number of new listings in one month.
While sellers are maintaining their share in the marketplace there is a definite power-shift towards buyers. Calvin Lindberg, Association President, commented saying “the more listings there are on the market, the bigger the impact on the average price”, suggesting that prices will have to decrease due to the abundance of houses on the market.
Buyers are presented with increased options and are able to scrutinize their selection and sellers will have to react accordingly; their pricing expectations are required to change, as well, they must realize that their leniency with buyer’s conditions must also shift.
Prices across Canada are having varied reactions to the current US market and Alberta is no exception. With prices softening out west the national average is declining and as a result, the average price decreased by approximately 2.4% from last year. The resale housing market is much more balanced this year than last but while we are currently seeing a National Average decrease, house prices in Calgary will continue to increase in the latter half of 2008, but at a more modest pace than we saw in the previous year. The Calgary decline has been a reflection of the entire Canadian market:
five of the major markets saw price declines. In Vancouver, prices dropped 5.2% in August from a year ago to an average of $557,114. Calgary prices were down 8% during the same period to $390,091.
In Toronto, home prices are no longer keeping pace with inflation with the average price of a home up 0.8% in August from a year ago.
The statistics show activity slowing rapidly with 22 out of the 25 markets down from a year ago. Sales declines were off more than 15% in almost half the markets with Vancouver activity off 53.9% from a year ago
The abundance of Financing Options available to consumers paired with the more modest home prices, has turned the Calgary Real Estate Market into a Buyer’s Market. Those individuals who thought they “missed the boat” by not purchasing property before the boom hit a year and a half ago, are now seeing their second chance.
MBN Mortgage
Statistics pulled from CBCNews.ca
Tags: buyer, finance, financing, market, mortgage, price, real estate
