Calgary Real Estate NewsCalgary's Real Estate market continues to be stuck in the doldrums with the sales-to-new-listings ratio hovering around 47.4%. In simpler terms, of the 16,760 homes listed this year, only 7,945 have sold as of September 30th, 2018.  This continues to put us firmly in a continued Buyers market with Sellers needing to be very realistic about their home prices.

Part of the slowdown can be attributed to the new mortgage stress test rules that took effect in January. These new rules, that were put in place to curb price appreciation in Toronto and Vancouver, have left Calgary caught in the crossfire. Our economy also continues to struggle with unemployment, pipeline uncertainties as well as increases to minimum wage and its effect on small business owners.…

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According to a newly released report by Royal LePage Canada, luxury home sales in Calgary have shown signs of recovery. The median price of a luxury detached home increased 0.6 per cent, to $1,990,184 so far in 2018. 

Alternatively, luxury condos are slightly down (6.1 per cent) to $926,620 for the first four months of this year. However, there is a huge inventory of condos on the market in Calgary and the supply continues to be saturated as new builds come onto the market. The luxury house market was down for several years following the recession, so this is encouraging news that prices are rising. 

“While some of the demand stems from buyers employed in the energy industry, it is becoming more common to see executive-level employees within…

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With more listings coming onto the market in March, the inventory of homes available in Calgary has increased, which means buyers have more options.

 "Economic conditions are slowly improving, but it has not been enough to outpace the current impact of higher lending rates and more stringent conditions," said CREB® chief economist Ann-Marie Lurie. "We are entering the most active quarters in the housing market with more inventory, which could create some price fluctuations. However, the improving economy is expected to prevent overall prices from slipping by significant amounts." [CREB]

 Some highlights of the housing market in Calgary right now, according to CREB®:

  • The benchmark price for detached homes in Calgary averages $502,000,…

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Mortgage Stress Test Calgary

Starting on January 1, 2018, the Office of the Superintendent of Financial Institutions (OSFI) set a new minimum qualifying rate, or “stress test” for all prospective home buyers, even those with a down payment of over 20%.

Before the new rule, only buyers that had a down payment of less than 20% had to make sure they could pass a stress test. Now it doesn’t matter how much money you save for a down payment, if you don’t pass the new stress test, the bank will not give you a mortgage.

Under the new mortgage stress test, potential home buyers need to qualify for a mortgage at a rate that is either 2% higher than the mortgage rate they qualified for, or the Bank of Canada’s five-year benchmark rate.  For most, that will mean qualifying for a home…

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At yesterday's 2018 CREB Forecast, the sentiment from industry experts was that this year is expected to be much of the same trends from 2017 when it comes to housing. As the January statistics were released by CREB, we can see that this has so far been true for real estate in Calgary. 

With the new mortgage rules also in effect, January sales activity has remained relative to last year at this time, and we expect to see that trend continue. Here is a brief look at January 2018:

  • Citywide unadjusted prices totaled $432,300 which is 0.25 per cent below last year.
  • Homes prices between $300,000 and $399,999 saw an increase in activity
  • Price declines were more pronounced in apartment and attached homes

This will be an adjustment to…

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This week, Royal LePage released their House Price Survey results, which showed many encouraging trends for real estate in Canada and Calgary. For instance, 2017 saw strong growth in the housing sector and looking forward in 2018, condos will be the ultimate choice for affordability. 

“To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability,” said Phil Soper, president and CEO, Royal LePage. “This is especially true for first-time buyers whose purchasing power has been reduced by tightening mortgage regulations.” c

For the last couple of years, the condo market has been saturated, due to an influx of inventory. While this hasn't been overly favourable to condo sellers (though pricing is…

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Last week, the Royal LePage Market Survey Forecast was released, with some notable predictions for the year ahead in real estate in Canada. The survey measures home prices in 53 major Canadian cities, and in terms of nationwide predictions, the average home price in Canada is expected to jump 4.9 per cent to $661,919 by the end of 2018.

One of the most significant regulatory interventions in the housing industry in years is the incoming Office of the Superintendent of Financial Institutions (OSFI) mortgage financing stress test, which will take effect on January 1, 2018. The stress test targets existing and prospective homeowners applying for a mortgage, requiring them to meet stricter criteria when seeking new financing. With a large number of…

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Variable interest rates have been the better option for many years and have saved homeowners significant sums of money. However, the Bank of Canada recently increased its prime rate by a quarter of a percentage point to 0.75 per cent, prompting charter banks to hike their prime rates to 3.2 per cent. The Bank of Canada jumped at the opportunity to make a 0.25 per cent hike last week over concerns about being behind on inflation as well as high levels of consumer debt. This somewhat surprising hike before the scheduled monetary policy update in October could be a tip-off that more could be coming.

A Bloomberg survey of economists says Canada’s central bank will raise its benchmark interest rate for a third consecutive meeting in October. The Bank of…

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Earlier this week, Royal LePage released their 2017 Canadian Recreational Housing Report, which outlines current statistics and trends in regards to the investment and recreational property market for this year. Among the most notable, was that Alberta recreation properties are recovering in sales, thanks the the continuously improving economy.

“Market conditions are favourable to buyers in the province’s recreational property segment, with prices having declined or remained flat for the last couple years during the economic slowdown,” said John Hripko, sales representative, Royal LePage Benchmark. “Buyers are currently recognizing that they’re in the midst of a very opportune time, cashing in on depressed property values while they…

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Starting for the 2016 tax year, which is generally due late this month, there are changes in place in regards to principal residences. Now, Canadian homeowners are required to report the sale of principal residences on their income tax returns, in order to claim the full principal residence exemption. 

In the past, many Canadians assumed that every sale of a residence was tax-free because of the Principal-Residence Exemption (PRE), and up until now the CRA has not required Canadians to report their sales. The result has been that many have sold residences, have not reported the sale, have paid no tax, even in situations where tax should have been owing. So finally the CRA decided to crack down.

When you sell your principal residence or when you…

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