The real estate market in Red Deer slowed in July.
After several months of unusually high levels, business activity in the city declined slightly last month. There were 153 sales, down about five percent year over year, but in line with long-term averages.
Lindsay Olver, president of the Central Alberta Realtors Association, said several reasons likely contributed to the slowdown.
First, with a new nationwide mortgage stress test going live in June, the effects are starting to be felt. She added that in Alberta in particular, with the easing of most restrictions related to COVID-19 effective July 1, buying a home may have slipped down the priority list for some people.
âWe certainly noticed a slight slowdown in July,â said Olver, real estate agent at Coldwell Banker Ontrack Realty.
âOn July 1, when everything was back to normal, we noticed that people weren’t looking at the houses as much. It could also be a summer thing. I think in September we’ll be able to find out more about how things are going, once people get used to going through this stress test. “
As of June 1, Canadian homebuyers began to face a more difficult âstress testâ when buying a home.
The bank should now use the higher interest rate of 5.25 percent or the interest rate you negotiate with your lender plus two percent. The federal government initially introduced the stress test in 2019.
July’s slowdown comes after record months earlier this year, including June when 204 units were sold. There have been 1,196 units sold since the start of the year, up 79% year over year.
The total average home price also continues to rise – standing at $ 349,760 – up 10.4% year over year. The average price of single-family homes, semi-detached houses and apartments also increased, while the average price of townhouses was down 4.4%.