Housing sales during the month of September in Fort McMurray continued to decline.
Fort McMurray Realtors® said the reductions are due to higher lending rates and concerns with regards to overall market conditions.
There were 66 total sales in our region during the month of September, which represents a decrease of more than 15 per cent year-over-year.
Meanwhile, there were more new listings to drive up inventories.
“While September inventories are far higher than levels seen over the past few years, they remain in line with levels achieved prior to the pandemic.”
Realtors® also notes nearly nine months of supply, so home prices are adjusting as real estate enters a buyers’ market.
“Recent price declines have been enough to offset any gains reported earlier this year and year-to-date the average price is nearly one per cent lower than last years levels.”
The average price of a single-family detached home in Fort McMurray was $504,300 in September.
That’s a decline of 9.5 per cent compared to the same time period in 2021.
The price of townhomes was more than $229-thousand for an over 45 per cent increase year-over-year, with apartments priced at just over $108-thousand.
Canada Mortgage and Housing Corporation’s Deputy Chief Economist Patrick Perrier predicts housing prices will drop 15 per cent between the first quarter peak of 2022 and next year’s second quarter.
He said the fall will do little for affordability, since it will be coupled with interest rate hikes and cause more pressure in the rental market.
Perrier expects a modest recession by the end of this year, but the downturn won’t be as severe as the last, and a recovery will begin in the second half of 2023.
With files from The Canadian Press.