-- Based on data from the Calgary Real Estate Board (CREB) for the Calgary economic region, National Bank of Canada estimates that seasonally adjusted home sales rebounded by 6.8% from March to April, following a 5.9% drop the previous month.
Despite this increase, home sales have essentially returned to their February levels, which represent one of the lowest levels of activity since the COVID-19 pandemic began, but still higher than the historical average, noted the bank last week.
In National Bank's view, the increase in sales over the month represents more of a rebound following a significant decline than the start of an upward trend.
Despite the Bank of Canada's interest rate cuts in the fall, activity in Calgary's real estate market doesn't appear to be showing any signs of a recovery in the short term, likely due to ongoing economic uncertainty and, more recently, geopolitical turmoil, it stated.
Should trade relations improve, the robust performance of the labor market in the region and a potential boost in consumer confidence could stimulate activity in the residential market, added the bank.
However, the recent rise in fixed mortgage rates due to rising inflation could limit this recovery, according to National Bank.