As we move into September, the Calgary housing market is showing notable changes from the intense sellers' conditions experienced earlier this year. Recent trends indicate a shift toward a more balanced market, driven by easing sales and an increase in supply.

Key Highlights:

1. Increased Supply: In August, the months of supply surpassed two, a level we haven’t seen since late 2022. With inventory reaching 4,487 units, this marks a 37% increase from last August, although it still sits nearly 25% below long-term averages for this time of year.

2. Shifts in Sales Activity: August recorded 2,186 sales, down 20% from last year’s peak but still 17% higher than the long-term average for the month. Notably, the decline was most pronounced for homes priced under $600,000.

3. Price Growth Slowing: Following a period of strong growth, the pace of price increases is starting to slow. The unadjusted residential benchmark price in August stood at $601,800, which is 6% higher than last year, though it saw a slight dip compared to July. Year-to-date, the average benchmark price has risen by 9%.

Insights from CREB®

Ann-Marie Lurie, Chief Economist at CREB®, notes that the uptick in new home construction and new listings is contributing to a better-supplied market. However, she emphasizes that supply levels remain particularly low for more affordable properties, indicating that achieving a balanced market will take time.

What’s Next?

As we head into the fall, it will be interesting to see how these trends continue to evolve. While the market is gradually stabilizing, prospective buyers should remain aware of ongoing supply challenges in the lower price segments.

Stay tuned for more updates as we navigate the changing landscape of Calgary’s housing market!

Contact me

Today, the federal government introduced significant reforms to Canada's mortgage system aimed at improving housing affordability and accessibility.

One of the most notable changes is the increase in the maximum value for CMHC-insured mortgages, raising the cap from $1 million to $1.5 million. This adjustment allows buyers to qualify for a mortgage with a down payment of less than 20% on homes priced up to $1.5 million, making higher-priced properties more accessible.

This policy change is intended to assist buyers in high-cost housing markets, where surging prices have made it difficult for many to secure insured mortgages under the previous $1 million limit.

Additionally, the government has extended the option for 30-year amortization periods to all first-time homebuyers. Previously available only for new constructions, this change is aimed at easing the financial strain on younger buyers by spreading payments over a longer period, thereby lowering monthly mortgage costs.

Both measures are set to take effect on December 15, 2024.

These reforms come in response to increasing concerns about housing affordability. Deputy Prime Minister and Finance Minister Chrystia Freeland highlighted that the changes are designed to make homeownership more attainable for Canadians and address ongoing challenges in the housing market.

"Building on our action to help you afford a down payment, we are now making the boldest mortgages reforms in decades to unlock homeownership for younger Canadians," she said.

The government will soon introduce regulatory amendments to implement these changes, with further details to be released in the coming weeks.

Contact me

Big update! The Bank of Canada just announced its third rate cut of the year, lowering the policy rate by 0.25% to 4.25%. 💰

Banks will likely adjust their prime rates within a few days, so keep an eye out! 👀

The next rate decision is set for October 23—will we see another cut? Stay tuned!

#BankOfCanada #InterestRates #MortgageUpdate #FinancialPlanning

Read more!