More balanced market conditions have emerged, effectively ending the stronghold that buyers had on the market over the past six to eight months.  Canada’s largest markets, Toronto and Vancouver, led the charge—with June sales among the highest in history for both local real estate boards.  Close to 11,000 properties changed hands in Toronto, up 27 per cent over one year ago, setting a new record for sales in the month of June.  The figure was just slightly off the all-time peak of 11,146 units.   Residential sales in Greater Vancouver increased 75.6 per cent over one year ago, to 4,259 units, just short of the record breaking 4,333 sales, which occurred in June 2005.  Overall, major markets began to recover in March, posting escalating sales in April, May and June.  The impetus is expected to continue throughout the remainder of 2009, with most centres now forecasting year-end sales on par or ahead of 2008 levels.

“While sales are the leading indicator, there are other clear signals that recovery is indeed underway,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news.  In addition, we’ve seen sale price-to-list price ratios climb across the country, rising as high as 105 per cent in some communities.  Vendor incentives have also come off the table, both for resale and new housing stock.”

The recent surge in resale activity can be attributed to three key factors—pent-up demand, low interest rates, and greater affordability.  The combination—in conjunction with declining inventory levels—has created heated market conditions in hot pocket neighbourhoods, prompting a resurgence in multiple offers in June.  Average prices are holding steady or climbing, days on market are down, and inventory levels continue to tighten, especially at entry-level price points.

“The strength of the market, amid the most significant global recession in recent history once again underscores its relevance to the nation’s economic engine,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “Canadians believe in homeownership –a fact best illustrated by the purchasers who ventured forward in recent months and snapped up some of the best real estate deals this market has seen in years.  Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat of rising interest rates, low inventory levels, and upward pressure on housing values.” 

Although the current pace may be unsustainable, all markers point to greater stability in the market, leading to healthier activity in the long run, with inventory levels a key variable influencing pent-up demand.

Be wary if asked for your Social Insurance Number, bank account numbers or your mother’s maiden name.  Some reputable companies may ask for your interest by having you check certain boxes, however this information should not be required in order to complete a transaction. 

Choose your password carefully.  Do not use your login password when making purchases, and never give out your passwords.

Paying by credit card is the safest and quickest way to shop online.

Print a copy of your order confirmation in case you have any problems with your purchase.  Also check for a customer service phone number in the event that problems arise.

It is very important to protect information such as your birth date, mother’s maiden name, credit card numbers, social insurance number and your PIN (Personal Identification Number).  Theft of your personal information can happen very easily, and in ways you may not suspect - a thief could steal your mail, be the host of an unsecured website or even be a guest in your home.

Protecting yourself from identity theft is a simple matter of being cautious with your personal information and disposing of confidential documents properly.  The Calgary Police Service suggests taking the following steps;

 - Be careful when giving out personal information; at the door, on the phone, on the Internet or by mail.  Make sure that you know who you are dealing with and how your information will be used.

 - Be suspicious of telephone/online surveys that request personal info.

 - Watch your mail - remove mail from your mailbox immediately. Contact Canada Post if mail has not arrived for an unusual amount of time.  File change of address notices to with Canada Post before you move.

 - Review your credit card and bank transactions, either online or through mailed statements.

 - Use a cross-cut shredder to shred all documents and mail such as credit card applications and bank statements.

 - Report lost or stolen identification and credit or debit cards immediately

 - Slim down your wallet - memorize your social insurance number, carry one low-limit credit card and store you birth certificate and passport in a safe place.

 - Be selective with your email address.  Reduce the amount of information you give out about yourself online.

 - When disposing of old computers, cellular phones and PDAs, remove the hard drive or professionally wipe it clean.

 - Protect your PIN (Personal Identification Number) when entering it into a bank machine or at a store cash register.  Do not write it down.  Do not give it to anybody.  Make sure that your PIN is one that cannot be easily guessed.

 - Review your credit bureau at least annually to ensure that all credit information is correct and up to date.

Under the new federal budget, first time home buyers can qualify for $750.00 tax credit, to help with closing costs, such as legal fees or appraisals.  Also, homebuyers can now withdraw up to $25,000 from their RRSP under the Home Buyers Plan for a down payment - up from the previous limited amount of $20,000.  Couples can access an extra $10,000 from their RRSPs under the new plan.

Here are some tips to help first time home buyers:

Start the process early.

A mortgage consultant can help you with getting the right documentation in place, such as proof of income and down payment.  A consultant will also check your credit history to avoid any unpleasant surprises and ensure that you can meet the lenders requirements. 

Know your price range:

 If you want to buy a home within the next few months, getting a mortgage pre-approval will help you determine the right price range of homes to shop for, it may also help you to avoid disappointment if looking at homes above your range. Many lending institutions will also guarantee a rate for up to 120 days when pre-approving potential borrowers for a mortgage.

Don’t rush your decision:

A buyers market means that you now may have the leeway to negotiate more with sellers on the price as well as other terms of the transaction such as the possession date and other extras to be included in the purchase.

Accelerate your payments - early and often:

A mortgage is often the largest debt a consumer will ever take on, and paying it down faster can mean large savings on interest costs over the long term.  Get in the habit of making lump sum payments whenever possible, and consider making bi-weekly payments as a way to decrease the life of the loan.

Know your goals:

Choose a mortgage that accommodates your present state of finances, but also fits your long-term goals. Don’t just buy a home because it’s a buyers market, choose a home that fits your lifestyle as well as your family’s needs in the years ahead.

The city of Calgary has dropped its plan to introduce a land transfer tax originally proposed as an initiative to cover the costs of affordable housing.

City Counsel narrowly squashed the consideration of a 1% home buyers tax in a vote of 8-7.

“A land transfer tax in an unfair tax.  It is essentially a home buyers’ tax and singles out a select group of individuals for taxation.  It asks home buyers to pay for Municipal services which benefit the entire community” wrote Calgary Real Estate Board President Bonnie Wegerich.

The Calgary Real Estate Board will continue to monitor the issue, and take further action should the need arise.

The single family home market, the average sale price dropped by 0.7% to $449,100 and the median sale price dropped by 5.5% to $390,000.  Average days active on the market rose by 20% to 48 days in October from 40 days in October 2007.

As for the condominium market, the average sale price lessened by 12.8% to $289,148 while the median price fell by 7.3% to $268,000. Average days on the market increased by 25% to 50 days, up from an average of 40 days in October 2007.

Home is where the heart is.  Good family and friends are so important, show them you care by inviting them over more often!

2. GET FITNESS IN FITNESS

The evidence is in for fitness.  Regular exercise has been associated with more health benefits than anything else known to man.  Studies show that it reduces the risk of some cancers, increases longevity, helps achieve and maintain weight loss, enhances mood, lowers blood pressure and even improves arthritis.  In short, exercise keeps you healthy, happy and makes you look and feel better.

3. LEARN SOMETHING NEW

Have you vowed to make this year the year to learn something new?  Perhaps you are considering a career change, want to learn a new language or just how to fix your computer on your own?  Whether you take a course or read a book, you will find education to be one of the easiest most motivating New Year’s Resolutions to keep.

4. GET OUT OF DEBT

Was money a big source of stress in your life last year?  Join the millions of Calgarians who have resolved to spend this year getting a hold of their finances.  It’s a promise that will repay itself many times over in the years ahead.

5. ENJOY LIFE MORE

Given the hectic, stressful lifestyles of millions, it is no wonder that “enjoying life more” has become a popular resolution in recent years.  It is an important step to a healthier and happier you.