Mid-month Market Update May 15, 2019

Central Alberta sales in the first two weeks of May kept pace with the same period in April, but Red Deer sales didn’t.  The number of active listings is up in every market we track except Blackfalds which remained steady.  Generally, inventories in central Alberta are well below last year’s levels.  Lower inventory levels means movement toward a balanced market and less choice for homebuyers, although it is still a buyer’s market in most price ranges.

We have noticed more activity and a higher confidence level in the last few weeks and are hoping it will translate into firm sales going forward.  Recent decisions by the Senate on Bills C69 and C48 have the potential to further boost confidence in Alberta.  On a gloomier note, the Bank of Canada seems convinced the mortgage stress test is still appropriate for the whole country which probably means the federal government will leave it in place.  That makes it more important than ever for the Alberta government to see what they can do here.

Sylvan lake Market Update May 1, 2019

After a good start to the month, the trend continued, and April MLS sales in central Alberta finished up 44% compared to March.  Our prediction that the election would trigger a surge of confidence appears to have been accurate as we are seeing evidence of an improving market on a daily basis.

The large banks are now starting to put public pressure on the federal government to remove or at least adjust the mortgage stress test.  They have admitted that the unintended consequences are massive withdrawals of first time buyers from the market as well as a dangerous trend from conventional mortgage funding sources to alternate lenders who charge higher rates but don’t follow the stress test rules.  That pressure just before an election may encourage some consideration for the rest of Canada that didn’t need the rule in the first place.

What we need now is for the new Alberta government to full-fill its promise to work with Alberta financial institutions to remove that massive stumbling block as well.  Every real estate transaction contributes about $55,000 to the local economy.  Fixing the inequities in the mortgage process could provide a very quick and effective boost to an Alberta economy that still badly needs help.

Mid-month Market Update May 15, 2019

Central Alberta sales in the first two weeks of May kept pace with the same period in April, but Red Deer sales didn’t.  The number of active listings is up in every market we track except Blackfalds which remained steady.  Generally, inventories in central Alberta are well below last year’s levels.  Lower inventory levels means movement toward a balanced market and less choice for home buyers, although it is still a buyer’s market in most price ranges.

We have noticed more activity and a higher confidence level in the last few weeks and are hoping it will translate into firm sales going forward.  Recent decisions by the Senate on Bills C69 and C48 have the potential to further boost confidence in Alberta.  On a gloomier note, the Bank of Canada seems convinced the mortgage stress test is still appropriate for the whole country which probably means the federal government will leave it in place.  That makes it more important than ever for the Alberta government to see what they can do here.

Rocky Mountain House Market Update May 1, 2019

After a good start to the month, the trend continued, and April MLS sales in central Alberta finished up 44% compared to March.  Our prediction that the election would trigger a surge of confidence appears to have been accurate as we are seeing evidence of an improving market on a daily basis.

The large banks are now starting to put public pressure on the federal government to remove or at least adjust the mortgage stress test.  They have admitted that the unintended consequences are massive withdrawals of first time buyers from the market as well as a dangerous trend from conventional mortgage funding sources to alternate lenders who charge higher rates but don’t follow the stress test rules.  That pressure just before an election may encourage some consideration for the rest of Canada that didn’t need the rule in the first place.

What we need now is for the new Alberta government to fulfil its promise to work with Alberta financial institutions to remove that massive stumbling block as well.  Every real estate transaction contributes about $55,000 to the local economy.  Fixing the inequities in the mortgage process could provide a very quick and effective boost to an Alberta economy that still badly needs help.

Mid-month Market Update May 15, 2019

Central Alberta sales in the first two weeks of May kept pace with the same period in April, but Red Deer sales didn’t.  The number of active listings is up in every market we track except Blackfalds which remained steady.  Generally, inventories in central Alberta are well below last year’s levels.  Lower inventory levels means movement toward a balanced market and less choice for home buyers, although it is still a buyer’s market in most price ranges.

We have noticed more activity and a higher confidence level in the last few weeks and are hoping it will translate into firm sales going forward.  Recent decisions by the Senate on Bills C69 and C48 have the potential to further boost confidence in Alberta.  On a gloomier note, the Bank of Canada seems convinced the mortgage stress test is still appropriate for the whole country which probably means the federal government will leave it in place.  That makes it more important than ever for the Alberta government to see what they can do here.

Red Deer Market Update May 1, 2019

After a good start to the month, the trend continued, and April MLS sales in central Alberta finished up 44% compared to March.  Our prediction that the election would trigger a surge of confidence appears to have been accurate as we are seeing evidence of an improving market on a daily basis.

The large banks are now starting to put public pressure on the federal government to remove or at least adjust the mortgage stress test.  They have admitted that the unintended consequences are massive withdrawals of first time buyers from the market as well as a dangerous trend from conventional mortgage funding sources to alternate lenders who charge higher rates but don’t follow the stress test rules.  That pressure just before an election may encourage some consideration for the rest of Canada that didn’t need the rule in the first place.

What we need now is for the new Alberta government to full-fill its promise to work with Alberta financial institutions to remove that massive stumbling block as well.  Every real estate transaction contributes about $55,000 to the local economy.  Fixing the inequities in the mortgage process could provide a very quick and effective boost to an Alberta economy that still badly needs help.

Mid-month Market Update – May 15, 2019

Central Alberta sales in the first two weeks of May kept pace with the same period in April, but Red Deer sales didn’t.  The number of active listings is up in every market we track except Blackfalds which remained steady.  Generally, inventories in central Alberta are well below last year’s levels.  Lower inventory levels means movement toward a balanced market and less choice for home buyers, although it is still a buyer’s market in most price ranges.

We have noticed more activity and a higher confidence level in the last few weeks and are hoping it will translate into firm sales going forward.  Recent decisions by the Senate on Bills C69 and C48 have the potential to further boost confidence in Alberta.  On a gloomier note, the Bank of Canada seems convinced the mortgage stress test is still appropriate for the whole country which probably means the federal government will leave it in place.  That makes it more important than ever for the Alberta government to see what they can do here.