“The decline in demand has caused many to anticipate steeper price declines for detached homes,” said CREB chief economist Ann-Marie Lurie. “That hasn’t happened in large part because detached supply levels haven’t climbed as sharply as many expected. There was a limited amount of supply in the overall market when this cycle began, and while levels did rise and remain somewhat elevated, they were well below previous highs.”
Prices are remaining stable. The average sale price for all residential homes increased 1.1% month-over-month and 1.5% year-over-year.
The Realtors Association of Edmonton claimed the coming months will bring healthy inventory, strong prices, and slower listings and sales.
The average sale price in September was 6% higher year-over-year, but the Saskatoon Region Association of Realtors argues those statistics are misleading.
“For many the average sale price is used to benchmark where the market is at. Year to date statistics reinforce why that is not a sound practice. As of the end of September, a total of 2,936 unit sales were recorded, a 7% drop from the same period in 2015. By comparison, the average sale price of $351,835 remains virtually unchanged from one year ago,” it said in a release. “Furthermore, the average sale price for September 2016 was 6% higher than last September.
“The reason, an increase in the number of properties selling at the higher end of the price range coupled with a decline in more affordable home sales,” it continued. “More specifically, year to date the number of units selling between $300,000 and $500,000 declined by 12% while the number of units selling above $750,000 increased by 20%.”
The average price jumped 4% year-over-year to $304,000 in September.
“Single-family homes and condominiums contributed to the increase in sales in September with respective increases of 4 per cent and 9 per cent, while plex sales fell by 9 per cent compared to one year earlier,” the Greater Montreal Real Estate Board said in a release.
The average detached home price fell 3.3% year-over-year to $503,400, according to the Calgary Real Estate Board.