The number of home foreclosures is up dramatically in Alberta -- more than double the national average.
Homes in the city are now on the market for an average of six months, according to realtor Robin Spiers.
"Now if you get an offer and you almost don't want to let it go, you want to try and make something work with it because it might be the only offer you get," he said.
Adding to the glut of homes is a growing number being sold by banks. When homeowners default on their mortgages and are forced to hand over the keys, and the situation is worse in Alberta than anywhere else in the country.
According to the Canadian Bankers Association, there are just over a half a million mortgages in Alberta and about 4,000 are in arrears. That amounts to 0.78%, nearly double the national average of 0.42%.
Analysts say that's because the economic downturn hit Alberta last, and the province is still feeling the effects.
"I think when someone loses their job it takes a bit of time to find a job. And for some unfortunate people and unlucky, it's taken them a bit longer and their mortgages are going into arrears," said Lai Sing Louie with the Canadian Mortgage and Housing Corporation.
The price of homes is down, but not by much compared to the drop in number of sales.
In October, prices of single family homes were down 4% from the same month last year and down 3% from September.
Louie believes the economy will improve in 2011 and that will be reflected in real estate. But if interest rates jump, so will the number of mortgage defaults, and that will put even more homes on the market.
The Calgary Real Estate Board says one bright spot in the market is in luxury homes where sales of those priced at $1 million or higher are up 15 per cent this year.
