After enduring an exceptionally strong seller's market for the past year, despite high interest rates, there was a lot of speculation over how rate drops may affect the housing market. Especially, as the first rate drop came just as real estate markets were transitioning to a traditionally slower season. In this article from the financial post article notes that the changes in the market show a slowdown but are not showing signs of market declines, such as falling prices. Housing prices nationally are down only 0.2% and markets such as Calgary are up 8% from last year. Statistics for Calgary show that the current market has moved in toward a balanced market with a sales/new listing ratio of 0.66. What remains to be seen is how the market will react in September. Inventory and sales increased in Q1 as compared to the previous year but while inventory increased in Q2 sales dropped. While a number of factors are involved in these trends looking to the fall we should expect to see a resolution of the seasonal effects on the housing market and a better reflections of recent changes in immigration, the economy and interest rates. At minimum Calgary is likely to maintain a balanced market or seller's market in the fall. Despite interest rate cuts many potential sellers will be unable to move up due to interest rates making qualifying more difficult. If buying activity picks up as seasonal trends predict then even a balanced market is less likely. Though it remains to be seen if the eponymous “stability” is more than a seasonal trend.
Original Article
Original Article