MLS sales in Calgary and Edmonton dipped in October by a larger number than across Canada.
Statistics released Thursday by the Canadian Real Estate Association said sales in the Calgary region of 1,676 during the month were down 9.2 per cent from a year ago while in the Edmonton region sales fell by 11. 2 per cent to 1,399.
Demand in those markets continues to be influenced by a slow economic recovery in the province after it suffered through two years of recession in 2015 and 2016 following the oil price collapse in the latter half of 2014.
In October, MLS sales in 18 major Canadian markets dipped by 3.7 per cent year-over-year to 39,313.
“This year’s new mortgage stress-test has lowered how much mortgage home buyers can qualify for across Canada, but its effect on sales has varied somewhat depending on location, housing type and price range,” said Barb Sukkau, CREA’s president.
“National sales activity lost momentum in October,” added Gregory Klump, CREA’s chief economist. “In part, this reflects waning activity among some urban centres in Ontario’s Greater Golden Horseshoe region and the absence of an offsetting rise in sales in the Lower Mainland of British Columbia. Even so, the balance between sales and listings in these regions points to stable prices or modest gains. By contrast, the balance between sales and listings for housing markets in Alberta, Saskatchewan and Newfoundland indicates a weak pricing environment for homeowners who are looking to sell.”
The benchmark price – the price of a typical home in a market – was down in October by 2.61 per cent in Calgary year over year to $422,000 while in Edmonton it dipped by 2.42 per cent to $324,000.
In Canada, the aggregate price of the 18 markets surveyed was $623,000 for the month which was up 2.33 per cent from a year ago.
Compared with three years ago, Calgary prices are down 5.92 per cent while Edmonton prices have fallen by 5.30 per cent. However, nationally prices are up by 27.92 per cent.
Compared with five years ago, Calgary prices have risen by 1.68 per cent while Edmonton prices are down by 0.16 per cent. Nationally, prices are up a whopping 44.04 per cent from five years ago.