There has been a marked decline in home sales since the new rules for mortgage approvals came into play. Following are some excerpts from the most current CREB® report.
Calgary, June 1, 2010 – Calgary home sales showed a marked decline in the month of May,according to figures released today by the Calgary
Real Estate Board (CREB®).
The number of single family homes sold in May 2010 in the city of Calgary was down 20 per cent from the same time a year ago, and condominium sales saw a decrease of 21 per cent from the same time a year ago.
“The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes,” says Diane Scott, president of CREB®. “We believe there are a number of factors contributing to this marked slowdown including a declining number of first time homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis,” says Scott.
“Consumers are feeling a little nervous about the recent instability of the stock markets—and with mortgage rate hikes behind us, it’s understandable that feelings of urgency among buyers have lessened,” adds Scott.
Click here for the full report, including statistical analysis and charts of the latest trends.