With new mortgage rules there was much speculation about the effect on the real estate market. The result last month: "Calgary continues to buck national housing sale trends. The 1,936 residential units sold in July represent a 21.3-per-cent increase over 2011."
Vancouver and Toronto are starting to see the declines in homes sales, but not Calgary. For those moving here from those markets, it will be an adjustment.
Year-to-date City of Calgary sales totaled 13,684, a 16.5-per-cent increase over the same time in 2011. Other sectors within the city limits have also recorded significant growth. The single-family market recorded the largest gains at 18.9 per cent, while the condominium apartment posted a 9.4-per-cent rise year-to-date.
The mortgage rule changes have had one effect that has not been that widely discussed. The impact is on those moving between properties and potentially purchasing a property prior to selling their existing home.
Many people use the equity in their current home to use as a down payment on their new home in order to avoid CMHC fees on their new mortgage. As refinancing of the current home is now limited to 80% of value, some people may not have access to the 20% and may reevaluate timing in order to move forward.
Time will tell if this change will increase the number of `subject to sale`offers in the mid to upper price points.
The challenge of `buy then sell` or `sell then buy` is different for everyone. Some people can`t sleep at night holding two properties while others can`t sleep at night if they do not know where they are moving. This appears especially true for families or those looking for unique or harder to find property types.
Notable Numbers from the CREB stats package:
Single family inventory levels were 3,646 units in June, nearly 20-per-cent lower than supply levels recorded in 2011.
Lower inventory, combined with increased sales, has resulted in stronger-than-anticipated price gains. The single family benchmark price reached $432,400 in July, a 7.8-per-cent increase over 2011, but on average only 5 per cent higher on a year-to-date basis. The increase in price has narrowed the variance from the peak of the market, but a 4-per-cent price gap remains.
Both the condominium apartment and townhouse market recorded year-over-year benchmark price gains of 2 per cent in July, for respective prices of $247,600 and $277,400.