Sep 15, 2010, Calgary MLS sales third highest drop in country

Only Vancouver and Victoria saw a greater drop in MLS sales than Calgary in August compared with a year ago, according to the Canadian Real Estate Association.

The national association of realtors reported today that sales of existing homes in Calgary fell by 32.8 per cent to 1,562 units during the month while the average sale price declined by 0.8 per cent to $385,712.

Victoria’s year-over-year sales were down 45.4 per cent in August followed by Greater Vancouver at 36.0 per cent.

CREA said existing home sales in Alberta also fell at a higher rate in August on a year-over-basis than the national average.

MLS sales in the province were down 26.9 per cent from August 2009 to 3,941 units while the average sale price dropped by 0.5 per cent to $342,571. New listings were up by 0.4 per cent to 8,634 units.

Nationally, sales were down by 19.5 per cent to 34,169 units with the average sale price unchanged from last year at $324,928. New listings across the country increased by 0.5 per cent to 64,457 units.

“Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool,” said Georges Pahud, CREA’s President, in a news release. “This is overlooked in recent commentary that suggests further changes to mortgage regulations may be needed. A further tightening of regulations could negatively impact Canada’s softening housing market and consumer confidence.”

Gregory Klump, CREA’s Chief Economist, said high sales activity late last year and earlier this year borrowed from sales this summer and will continue do so over the coming months.

“This makes the return to more normal levels of sales activity look like a steep downward trend,” he said. “The hangover from accelerated home purchases is likely to persist over the rest of the year. Although economic and job growth are expected to be tepid, they will continue to support housing markets.”

By Mario Toneguzzi, Calgary Herald