Calgary Year-Over-Year Housing Sales Growth Best In Canada

CALGARY — While most of Canada’s major centres recorded year-over-year MLS sales declines in September, Calgary went against the tide with the highest annual growth rate in the country.

According to the Canadian Real Estate Association, MLS sales in Calgary rose by 14.8 per cent from September 2011 to 2,054 transactions.

In contrast, sales across the country fell by 15.1 per cent to 32,192.

But the average MLS sale price in Calgary dipped by 0.9 per cent in September to $402,756.

Nationally, the average price rose by 1.1 per cent to $355,777.

“Economic growth in Calgary has been stronger compared to many other regions in the country,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Thus far in 2012, employment in Calgary was up over 3.5 per cent while the Canadian average is at about one per cent. Provincial migration to Alberta has also been robust with net gains from nearly every region in the country. Many of the factors that support housing demand have grown in Calgary and have outperformed many other areas in Canada.”

CREA said Monday that more than half of all local markets in the country posted sales declines of at least 10 per cent on an annual basis.

“New mortgage rules continue to keep a lid on national sales activity,” said Wayne Moen, CREA’s president.

The organization’s chief economist, Gregory Klump, said national activity is likely to remain down from year-ago levels over the fourth quarter of this year.

“In the shadow of the latest mortgage rule changes, activity has ratcheted down from higher levels seen during the fourth quarter last year,” he said. “While some first-time homebuyers may no longer qualify for mortgage financing under the new rules, it is likely that many others are stepping back and reassessing how much house they can realistically afford, which is one of the things new mortgage rules were designed to do.”

In Alberta, MLS sales rose by 7.7 per cent from last year to 4,714 while the average price increased slightly by 0.2 per cent to $355,127.

“While the 15 per cent year-over-year drop in sales suggests Canadian housing is making like Felix Baumgartner, falling past the speed of sound, the details are not nearly as weak, and still suggest that the housing market is simply gliding to a lower altitude,” said Douglas Porter, deputy chief economist with BMO Capital Markets.

On Monday, CREA also released its MLS Home Price Index. The national index rose 3.9 per cent year-over-year in September. This was the fifth time in as many months that the annual gain shrank and marks the slowest rate of increase since May 2011.

Regina led the country with a 14.2 per cent hike followed by Calgary at 6.5 per cent.

mtoneguzzi@calgaryherald.com

Twitter:@MTone123



Read more: http://www.calgaryherald.com/homes/Calgary+year+over+year+housing+sales+growth+best+Canada/7390991/story.html#ixzz29UPNKAwT

Home Sweet Home

Home Sweet Home

REALTORĀ®
CENTURY 21 Bamber Realty Ltd.
Contact Us