DRAWING CUSTOMERS

First-time buyers back in the market
Housing prices, interest rates draw customers
By Mario Toneguzzi
Calgary Herald April 6, 2011

First-time buyers have re-entered the Calgary resale housing market with "a renewed sense of confidence," says a report released Tuesday by real estate firm Re/Max.

In the first two months of this year, 32 per cent of all sales occurred under $300,000 in Calgary, said the report.

Jennifer Upperton and her sister Helen, an Olympic bobsledder, have been in the market looking for their first home.

"We're looking for inner city for sure," said Jennifer. "We're looking for either a raised bungalow or a house that has more than one suite in it.

"One of the reasons (for entering the market now) is because I've been renting for 10 years. That's probably the biggest one. Another one is we've just finally got enough money for a solid down payment."

Upperton said low interest rates are also a reason for the two embarking on a search for a home.

"We're just excited to get a place," she said. "My sister has been travelling so much that she has never really been able to have a home.

Sano Stante, president of the Calgary Real Estate Board, said the industry is "encouraged" to see first-time buyers moving into the market because it "permeates up market in months to come."

"So it almost assures us of a sustainably slow-growing market," he said.

"Good affordability, low interest rates and lots of inventory (are the reasons why first-time buyers are moving into the market). Until the inventory dwindles perhaps near the end of the year, or prices start to come up, or interest rates start to come up, we've really got a good balanced market right now."

The Re/Max report said the average residential price in the Calgary metro area was about $410,000 at the end of February.

"The strength of the entrylevel segment is good news for the spring market as sales of starter homes are expected to have a domino effect, prompting greater move-up activity in the weeks and months ahead," said the report.

In the overall market, the number of homes sold in Greater Calgary is slightly below 2010 levels, with 3,199 properties changing hands as of Feb. 28 versus the 3,297 sales reported during the same period last year.

Photo By: Susanrudat