Market adjusts to erase earlier gains

After a gradual climb back up, the Calgary real estate market is poised to wipe out any gains  made earlier in the year. According to figures released today by the (CREB®) Calgary Real Estate Board, sales in the city of Calgary continued to trend lower in August down 32% for single family homes from a year ago, and condominium sales decreased 42% from the same time a year ago. The increases from earlier this year seemed to be caused by an over exuberance in the market that appeared to me to be somewhat irrational. Except for Buyers rushing to get into the market ahead of new mortgage regulations and anticipation of interest rate increases, there was no good rationale for the market to react with the exaggerated exuberance that we witnessed early in this year. This reality seems to have caught up with us and we now appear to be erasing most of those gains. You can read the full August 2010 report on on the Calgary Real Estate Market here.

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