Calgary'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. It is this combination of factors that has shaken confidence in the market.
What does this all mean for home values? This seems to be the new normal of Calgary Real Estate. Those looking to buy may want to take advantage of the current market conditions, but they need to be realistic with their expectations when selling their existing home. There are also some signs of improvement in the rental market which in turn could contribute to a reduction in housing supply.
It also comes down to how badly people want to sell. There will be those sellers in the market that need to sell their home at any cost and those that have time on their side and are not willing to sell at a loss. The question becomes: how long are people willing to wait?
With so many factors to consider when buying and selling as well as trying to understand Calgarians’ motivations to buy and sell, it is impossible to predict where prices will go this winter, especially when it arrives so early.