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Real Estate

NEWSLETTER

 

Peter Kusch

Tel.:990-7990

 

 October 2017


 

 

NEW MORTGAGE RULES

It is official – effective January 1, 2018 all buyers who require a financing to purchase a property would need to prove they could still afford their mortgages if interest rates were 2 per cent higher than the rate they negotiated. This rule will reduce everyone’s borrowing capacity. According to a various reports, the borrowers with a household income of $80,000 seeking a maximum mortgage with a bare 20 per cent down payment would see the maximum house price they could afford fall by 19 per cent. Another report shows 27 per cent of borrowers seeking uninsured mortgage had financial profiles that could fail the new stress-test standards. Fortunately the credit unions and alternative lenders are exempt from this rule but they might struggle to meet the demands for funding over time. So in a short time we’re going to see a spike in the selling activity with people trying to finalize transactions before January 1. After that the new rules will definitely put a chill on the housing market at a time that it can ill afford it. Notably, the new stress test rules won't apply to mortgage renewals as long as they are with the borrower's existing lender.

  • Total residential MLS sales in Calgary year to date were 7.2 per cent higher in comparison to 2016.
  • New listings in September 2017 were up 9.7 per cent higher than in September 2016.
  • Sales to new listings ratio in September 2017 was 44.7 per cent versus 49.7 per cent in September last year.
  • It took 45 days on average to sell a property in September 2017 as oppose to 46 days in September 2016.
  • 6,861 – Active listings in the city last month, almost17% higher than last year.
  • Sale to list price in September 2017 was 97.3 per cent – slightly higher than 97.2 per cent achieved in September 2016.
  • Months of supply in September: Detached – 3.8; Attached – 4.9; Apartments – 8.4.
  • The total sales in September 2017 were 10 per cent below 10-year average of 1,626.
  • 39 per cent of all listings in Calgary are vacant properties.

 

 Average days on the market (Calgary Meto)

 

 

Average days on the market in 

September 2017

Average days on the market in  

September 2016

 

Detached  

 

42

42

 

Attached

 

49

51

 

Apartments

 

57 56

 

 Attached category includes condominium townhouses and duplexes.

  

Median price (Calgary Metro)

 

 

Median price in  

September 2017

Median price in  

​September 2016

Percentage change

 

Detached

 

  $482,000

$490,000

-1.6%

 

Attached

 

$350,000

$340,000

2.9%

 

Apartments

 

$248,750

$280,000

-11.2%

 

The median price is where half sell for more and half for less.

 

Months of supply (Calgary Metro)

 

January 2014 1.57
February 2014 1.47
March 2014 1.26
April 2014 1.55
May 2014 1.57
June 2014 1.82
July 2014 2.05
August 2014 2.07
September 2014 2.13
October 2014 1.97
November 2014 2.16
December 2014 2.99
January 2015 5.31
February 2015 4.57
March 2015 3.19
April 2015 2.85
May 2015 2.44
June 2015 2.32
July 2015 2.53
August 2015 3.16
September 2015 3.85
October 2015 3.93
November 2015 4.21
December 2015 4.94
January 2016 6.57
February 2016 5.04
March 2016 3.83
April 2016 3.54
May 2016 3.20
June 2016 2.95
July 2016 3.26
August 2016 3.61
September 2016 3.97
October 2016 3.30
November 2016 4.06
December 2016 4.04
January 2017 4.36
February 2017 3.35
March 2017 2.71
April 2017 2.90
May 2017 2.95
June 2017 3.12
July 2017 4.08
August 2017 4.13
September 2017 4.69

 

 

 Source: Calgary Real Estate Board

Calgary Metro-within Calgary City Limits