The impending tightening of the mortgage regulations is likely the reason behind a strong gain for Edmonton home sales.
All residential sales were up 12.4% year-over-year with an 18.3% rise for condos, 9.86% increase for single-family detached, and duplex/rowhouse sales were up 4.27%.
“Although the year-over-year growth in sales volume is encouraging, the surge is likely related to consumers trying to complete purchases before new restrictive borrowing rules come into force in the new year,” said James Mabey, Chair of the REALTORS® Association of Edmonton.
On a month-over-month basis, sales were lower across all property types with single-family units leading the decline (-17.9%).
Inventory was down 8.37% from October but up 3.6% compared to November 2017 while listings were up 5.27% from a year earlier but down 19.7% from October.
“There are fewer listings coming onto the market now as we end 2017,” said Mabey. “Looking forward to 2018, we will see higher inventory levels than in previous years, coupled with new mortgage rules that may slow the market, at least temporarily, as consumers adjust their expectations in response to the new lending rules. If this is the case, we may experience some market tightening in the new year.”
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