The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) system reached 2,317 in October, a 1 per cent decrease compared to the 2,337 sales in October 2010 and a 3.2 per cent increase compared to the previous month. Those sales rank as the second lowest total for October over the last 10 years.

Right now, prospective home buyers have a good selection of properties to choose from and more time to make decisions.  Home sellers should be mindful of local market conditions to ensure they are pricing their properties competitively.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,374 in October, which is on par with the 10-year average. This represents an 18.3 per cent increase compared to October 2010, when 3,698 properties were listed for sale on the MLS®, and a 23 per cent decrease compared to the 5,680 new listings reported in September 2011.

The total number of properties listed for sale on the Greater Vancouver MLS® system currently sits at 15,377, which is 9.3 per cent higher than the 14,075 properties listed for sale during the same period last year. October was the first month that the total number of property listings showed a decrease this year.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.5 per cent to $622,955 in October 2011 from $579,349 in October 2010. However, since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.3 per cent.

* Article courtesy of the Greater Vancouver Real Estate Board.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties on the region’s Multiple Listing Service® (MLS®) reached 2,246 in September, a 1.2 per cent increase compared to the 2,220 sales in September 2010. Those sales also rank as the third lowest total for September over the last 10 years.

“There's more competition amongst home sellers in today's market, providing more options for prospective buyers," Rosario Setticasi, REBGV president said."Buyers now have more properties to choose from and more time to make decisions compared to the spring season.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 5,680 in September, the third highest volume for September in 17 years. This represents a 20.1 per cent increase compared to September 2010 when 4,731 properties were listed for sale on the MLS® and a 21.2 per cent increase compared to the 4,685 new listings reported in August 2011.

The number of properties listed for sale on the Greater Vancouver MLS® system has increased each month since the beginning of the year. At 16,085, the total number of residential property listings on the MLS® increased 4.6 per cent in September compared to August 2011 and rose 4.4 per cent compared to this time last year.

“Our sales-to-active-listing ratio currently sits at 14 per cent, which is the lowest it’s been this year. Generally analysts say that a buyer’s market takes shape when the ratio dips to about 12 to 14%, or lower, for a sustained period of time,” Setticasi said.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 8.8 per cent to $627,994 in September 2011 from $577,174 in September 2010.

Since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 0.5 per cent.

Sales of detached properties on the MLS® in September 2011 reached 957, an increase of 10.5 per cent from the 866 detached sales recorded in September 2010, and a 32.8 per cent decrease from the 1,423 units sold in September 2009. The benchmark price for detached properties increased 13.4 per cent from September 2010 to $896,701.

Sales of apartment properties reached 922 in September 2011, a 5 per cent decrease compared to the 971 sales in September 2010, and a decrease of 38.1 per cent compared to the 1,489 sales in September 2009. The benchmark price of an apartment property increased 4.4 per cent from September 2010 to $405,569.

Attached property sales in September 2011 totalled 367, a 4.2 per cent decrease compared to the 383 sales in September 2010, and a 43.3 per cent decrease from the 647 attached properties sold in September 2009. The benchmark price of an attached unit increased 5.4 per cent between September 2010 and 2011 to $516,697.

The Real Estate Board of Greater Vancouver reports that residential property sales of detached, attached and apartment properties on the MLS® reached 2,378 in August. This total represents an eight per cent increase compared to the 2,202 sales in August 2010, but also ranks as the third lowest total for August in the last 10 years.

MLS® statistics continue to indicate that we’re in a balanced market, however, with a sales-to-actives listings ratio of 15 per cent, Greater Vancouver is in the lower end of a balanced market and has been trending toward a buyers’ market over the past three months.

New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,685 in August. This represents a 24.9 per cent increase compared to August 2010 when 3,750 properties were listed for sale on the MLS® and an eight per cent decline compared to the 5,097 new listings reported in July 2011. Last month’s new listing total was the highest volume recorded for August in 16 years.

The benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 8.5 per cent to $625,578 in August 2011 from $576,597 in August 2010.

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The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties in Greater Vancouver reached 4,080 in March 2011. This represents a 31.7 per cent increase compared to the 3,097 sales recorded in February 2011, an increase of 30.1 per cent compared to the 3,137 sales in March 2010 and an 80.1 per cent increase from the 2,265 home sales in March 2009. The all-time sales record for March occurred in 2004 when 4,371 transactions were recorded.

“Our market has had a very strong start to the spring season,” Rosario Setticasi, REBGV president said. “With home sales above 4,000 and nearly 7,000 home listings added to the MLS® in March, it’s clear that home buyers and sellers view this as a good time to be active in their local housing market.”

New listings for detached, attached and apartment properties in Greater Vancouver totalled 6,797 in March 2011. This represents a 3 per cent decline compared to March 2010 when 7,004 properties were listed for sale on the MLS®, an all-time record for March. Compared to February 2011, last month’s new listings total registered a 19.4 per cent increase.

At, 13,110, the total number of residential property listings on the MLS® increased 9.9 per cent in March compared to last month and declined 3 per cent from this time last year.

“Conditions favour sellers at the moment, but we’re seeing differences in home-price trends and overall activity depending on the region and property type,” Setticasi said.

The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.4 per cent to $615,810 in March 2011 from $584,435 in March 2010.

Sales of detached properties on the MLS® in March 2011 reached 1,795, an increase of 34.4 per cent from the 1,336 detached sales recorded in March 2010, and a 100.1 per cent increase from the 897 units sold in March 2009. The benchmark price for detached properties increased 8.3 per cent from March 2010 to $866,806.

Sales of apartment properties reached 1,622 in March 2011, a 29.6 per cent increase compared to the 1,252 sales in March 2010, and an increase of 66.2 per cent compared to the 976 sales in March 2009. The benchmark price of an apartment property increased 2.1 per cent from March 2010 to $403,885.

Attached property sales in March 2011 totalled 663, a 20.8 per cent increase compared to the 549 sales in March 2010, and a 69.1 per cent increase from the 392 attached properties sold in March 2009. The benchmark price of an attached unit increased 3.6 per cent between March 2010 and 2011 to $511,039.

“Recent global events have loosened the market’s expectations for tighter monetary policy in the advanced economies,” Camilla Sutton, chief currency strategist at Scotia Capital, said in a note to investors.

“The expectations for the Bank of Canada have undergone the most significant decline. On March 3rd, the market had priced in 95 basis points of tightening over the next 12 months (essentially four interest rate hikes); however as of today this has dropped to only 56 basis points.”

That means instead of a widely expected rate hike in early summer, the market is now looking at early fall for a rate hike to be 100% priced in, resulting from Middle East turmoil, Japan’s nuclear crisis and a multi-decade low in Canada’s core inflation, Ms. Sutton said in an interview.

The possibility of a federal election falling on the heels of Tuesday’s 2011 budget is also telling the market that Bank of Canada governor Mark Carney will remain on the sidelines in the near term, said Douglas Porter, deputy chief economist at BMO Capital Markets.

“Past election campaigns have sparked some early volatility in the Canadian dollar, which usually lasts about a day or so, and usually the Bank of Canada does its level best to stay out of the picture, making any rate move on April 12 even less likely,” Mr. Porter said, in reference to the bank’s next scheduled date for announcing the overnight rate target.

Despite the benign rate outlook, the Canadian dollar was trading sharply higher Monday, up 87 basis points to 102.28 US cents, as oil prices rose in reaction to allied air strikes and on concern that escalating turmoil may curtail Middle East shipments.

As well, said Ms. Sutton, expectations for tighter monetary policy may begin to rebuild over the next several weeks, as the initial shock of Japan’s earthquake passes and sentiment shifts to the economic benefit the country’s rebuilding could mean for commodity-rich Canada.

Now passed, this will have a major impact on the way real estate sales are conducted across the country.

Once implemented, the new agreement will permit sellers to choose to conduct the sale process by themselves, hiring an agent for as little as a few hundred dollars, solely to list their home on the Multiple Listing Service [MLS]. Or, they could retain the agent to conduct some aspects of the sale process, such as the negotiations and contract documentation.

What is the probable impact of these changes? In BC the change will not be significant. Unlike in many other provinces, our Real Estate Boards already allow a broad range of real estate services and commission structures — many involving MLS listings at significant discounts.

There is no question however, that if realtors start offering MLS exposure for a nominal amount such as $495, a significant number of sellers who would not consider doing so today, will be tempted to try selling on their own. They may assume, quite incorrectly, that an MLS Listing is the main precondition to achieving a successful sale.

Yes, the MLS listing provides important exposure. That in itself however, will not produce a sale at the highest-possible price. A seller, managing the sale process on his own, will need a marketing budget, along with the skill to implement it effectively. He will need to invest in advertising, brochures and signage. He will need to hold effectively-staged open houses. Even should he manage all these things well, he will lack the network of buyer contacts available to an effective realtor. If the seller succeeds in attracting a buyer, he will need the skills necessary to negotiate, close, and document the deal, and in a manner that protects his interests without scaring off the buyer. Under the new rules of course, he may choose to retain a realtor to perform some or all of these functions.

Going it alone is much easier said than done. Those who try it must have the skills necessary to protect themselves from more sophisticated buyers who may otherwise take advantage.

Without a doubt, the new rules will prompt marginal realtors to drop out at an even faster rate than at present. Top realtors who clearly deliver value for the commission they charge will continue to be in demand.

Buying or selling a personal home usually represents a family’s largest single asset. A purchase or sale of such magnitude and importance deserves to be managed very carefully. A minority of individuals have the skills necessary to do so successfully on their own. Many more think they do. They will be even more tempted under the proposed changes to test their belief. Be forewarned — it is not nearly as easy as it seems.

The economic outlook for Canada has changed. The Bank expects the economic recovery to be more gradual than it had projected in its July Monetary Policy Report, with growth of 3.0 per cent in 2010, 2.3 per cent in 2011, and 2.6 per cent in 2012. This more modest growth profile reflects a more gradual global recovery and a more subdued profile for household spending. With housing activity declining markedly as anticipated and household debt considerations becoming more important, the Bank expects household expenditures to decelerate to a pace closer to the rate of income growth over the projection horizon.

Overall, the composition of demand in Canada is expected to shift away from government and household expenditures towards business investment and net exports. The strength of net exports will be sensitive to currency movements, the expected recovery in productivity growth, and the prospects for external demand.

Inflation in Canada has been slightly below the Bank’s July projection. The recent moderation in core inflation is consistent with the persistence of significant excess supply and a deceleration in the growth of unit labour costs. The Bank judges that the output gap is slightly larger and that the economy will return to full capacity by the end of 2012 rather than the beginning of that year, as had been anticipated in July. The inflation outlook has been revised down and both total CPI and core inflation are now expected to converge to 2 per cent by the end of 2012, as excess supply in the economy is gradually absorbed and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. This leaves considerable monetary stimulus in place, consistent with achieving the 2 per cent inflation target in an environment of significant excess supply in Canada.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,220 in September 2010. This represents a 0.8 per cent increase compared to August 2010 and 37.6 per cent decline from the 3,559 sales in September 2009.

In comparison, last month’s residential sales represent a 40.1 per cent increase over the 1,585 residential sales in September 2008, a 20 per cent decline compared to September 2007’s 2,776 sales, and an 11.9 per cent decline compared to September 2006’s 2,519 sales.

Since spring, housing prices in the region have trended slightly downward, with a decrease of 2.7 per cent compared to the all-time high reached in April when the MLSLink® Housing Price Index (HPI) residential benchmark price was $593,419. The overall benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.5 per cent to $577,174 in September 2010 from $547,092 in September 2009. The current price remains consistent with last month, rising just 0.1 per cent between August and September 2010.

Total active property listings posted on the Multiple Listing Service® (MLS®) in Greater Vancouver currently sit at 15,401, basically unchanged compared to last month and a 22 per cent increase from September 2009. Over the last three months, active listings in the region have declined 12.3 per cent.

New residential property listings posted in September declined 17.6 per cent to 4,731 compared to September 2009 when 5,746 new units were listed.

Sales of detached properties in September 2010 reached 866, a decrease of 39.1 per cent from the 1,423 detached sales recorded in September 2009, and a 58.6 per cent increase from the 546 units sold in September 2008. The benchmark price for detached properties increased 6.7 per cent from September 2009 to $790,992.

Sales of apartment properties reached 971 in September 2010, a decline of 34.7 per cent compared to the 1,489 sales in September 2009, and an increase of 27.1 per cent compared to the 764 sales in September 2008.The benchmark price of an apartment property increased 3.7 per cent from September 2009 to $388,373.

Attached property sales in September 2010 totalled 383, a decline of 40.1 per cent compared to the 647 sales in September 2009, and a 39.3 per cent increase from the 275 attached properties sold in September 2008. The benchmark price of an attached unit increased 5.2 per cent between September 2009 and 2010 to $490,385.

Economic activity in Canada was slightly softer in the second quarter than the Bank had expected, although consumption and investment have evolved largely as anticipated.  Going forward, consumption growth is expected to remain solid and business investment to rise strongly. Both are being supported by accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.

The Bank now expects the economic recovery in Canada to be slightly more gradual than it had projected in its July Monetary Policy Report (MPR), largely reflecting a weaker profile for U.S. activity. Inflation in Canada has been broadly in line with the Bank's expectations and its dynamics are essentially unchanged.

What this means to the average homeowner is that the Bank's Prime Rate will be moving up from 2.75% to 3.00%. The major banks have forecast that no more adjustments are expected before March 2011. The best variable rates available today are Prime minus 0.65 to Prime minus 0.70 which equals 2.35% to 2.30%, and these discounts may improve in the coming weeks.  If you currently have a variable rate mortgage, this means your payments will increase approx $60 a month per $400,000 in mortgage amount.

However there are signs that the economy, if not stalling out, may be slowing down. April’s monthly GDP print was disappointingly flat as consumers moved to the sidelines, sending retail sales lower by almost 2%. 

Even if Canadian consumers are beginning to tire out, economic growth should be supported in coming months by projects initiated under the federal government’s infrastructure stimulus plan. This stimulus will provide a needed boost to the economy through the remainder of 2010, with projected impacts peaking in the third quarter, but will create a drag on growth in 2011 as the stimulus is withdrawn from government expenditure.

The strength of the Canadian economic recovery over the past six months is evidenced by the over 300,000 jobs created in the Canadian economy since the beginning of the year. While this exceptional rate of job creation stands in stark contrast to the gloomy employment situation of our southern neighbour, it also re-affirms the need for the Bank of Canada to begin withdrawing its emergency level of monetary stimulus by raising interest rates, particularly given the proximity of core inflation to its 2% target rate.

The withdrawal of monetary and fiscal stimulus from the Canadian economy in coming months will result in slower growth in both the second half of 2010 and into 2011. This growth slowdown may be further exacerbated by weaker than currently anticipated US and global economic growth as well as a higher Canadian dollar resulting from a rise in Canadian interest rates relative to the United States.

In all, slower economic growth and inflation that is within the Bank of Canada’s comfort zone should mean that, while interest rates are certain to rise, the pace of interest rate increases should be orderly and the level of interest rates will remain near historic lows through the remainder of the year.

By Cameron Muir, Chief Economist and Brendon Ogmundson, Economist, British Columbia Real Estate Association.

The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totalled 2,255 in July 2010. This represents a 45.2 per cent decline from the 4,114 sales in July 2009, the highest selling July ever recorded, and a 24.1 per cent decline compared to June 2010.

Looking back further, last month’s residential sales represent a 3.7 per cent increase over the 2,174 residential sales in July 2008, a 41.8 per cent decline compared to July 2007’s 3,873 sales, and a 17.5 per cent decline compared to July 2006’s 2,732 sales.

“With the pace of home sales and listings easing off in our market, we’ve begun to see a levelling of home prices from the record highs seen in the spring, creating greater affordability,” Jake Moldowan, REBGV president said. “Activity in today’s marketplace is clearly trending in favour of buyers.”

The number of properties listed for sale on the market has been trending downward since spring, with 4,138 new listings in July compared to April’s peak of 7,648. New listings for detached, attached and apartment properties in Greater Vancouver on the Multiple Listing Service® (MLS®) declined 17.9 per cent in July 2010 compared to July 2009, when 5,041 properties were listed for sale.

At 16,431, the total number of property listings on the MLS® in July declined 6.5 per cent compared to last month and increased 33 per cent compared to July 2009.

“It’s currently taking home sellers who work with a REALTOR®, on average, 45 days to sell their property, which is a historically healthy timeframe for people on both sides of a transaction,” Moldowan said.

Since spring, housing prices have decreased 2.8 per cent compared to the all-time high reached in April when the residential benchmark price was $593,419. Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 9.1 per cent to $577,074 in July 2010 from $528,821 in July 2009.

Sales of detached properties in July 2010 reached 908, a decrease of 43.7 per cent from the 1,614 detached sales recorded in July 2009 and a 9.8 per cent increase from the 827 units sold in July 2008. The benchmark price for detached properties increased 11.5 per cent from July 2009 to $793,193.

Sales of apartment properties reached 979 in July 2010, a decline of 42.7 per cent compared to the 1,708 sales in July 2009 and an increase of 1.3 per cent compared to the 966 sales in July 2008.The benchmark price of an apartment property increased 6.2 per cent from July 2009 to $387,879.

Attached property sales in July 2010 totalled 368, a decline of 53.5 per cent compared to the 792 sales in July 2009 and a 3.4 per cent decline from the 381 attached properties sold in July 2008. The benchmark price of an attached unit increased 8.6 per cent between July 2009 and 2010 to $490,995.

In fact, its Monetary Policy Report, released Thursday, made a compelling case for leaving the benchmark overnight rate where it was rather than increasing it by a quarter of a percentage point to 0.75 per cent.

Here's some of what the central bank said:

Economic growth in Canada will be weaker than expected. Gross domestic product is projected to grow by 3.5 per cent this year, 2.9 per cent in 2011 and 2.2 per cent in 2012.

Consumer spending will slow to a pace consistent with income growth. (Statistics Canada reported Thursday that retail sales dropped 0.2 per cent in May.)

Business fixed investment has been more subdued than expected and its level is still depressed.

Inflation has been in line with the bank's projection -near two per cent for both core inflation and the consumer price index.

Economic recovery in the United States is weaker than anticipated due to fallout from Europe's sovereign debt crisis and little recovery in household demand.

The policy response to the debt crisis will slow global recovery, with growth forecast to average less than four per cent through 2012.

The bank acknowledged that risks to even this sluggish forecast are considerable.

Global private demand may be insufficient to sustain the recovery, it said.

None of this suggests monetary tightening is necessary.

Not discussed in the report, but clear from the data that accompany it, is the fact that roughly a quarter of Canada's productive capacity is idle.  Capacity utilization in the first quarter was 74.2 per cent, far below the rate at which inflation becomes a concern.  The average rate from 1987 to 2001 was 83.4 per cent.

The output gap, an economic measure of actual GDP against potential GDP, is negative 1.9 per cent, meaning there is slack in the economy due to weak demand.

The June unemployment rate of 7.9 per cent is still well above the pre-recession level of 6.1 per cent. And employment insurance claims are on the rise again.

In the bank's regional office survey, 95 per cent of firms said they expect consumer price inflation over the next two years to range between one and three per cent.

Defenders of the rate hike argue that the central bank hopes to avert a housing bubble, but the real estate market was already softening before the increase, with the harmonized sales tax in Ontario and British Columbia putting a chill on new-home sales.

Others suggest the bank raised rates to send a message to Canadians to rein in household debt.  But making that debt more expensive will only deepen their financial malaise. A better approach to deleveraging would be to encourage financial institutions to restrict personal interest-only revolving credit lines.

While the bank is to be commended for its vigilance against any resurgence of inflation, an insidious destroyer of value, this latest rate hike defies logic.  It may even have to backpedal given that the U.S. Federal Reserve is keeping its key rate at 0.25 per cent. Indeed, the only benefit to be realized from higher rates may be that it offers some flexibility if the U.S. drags Canada back into recession.

The bank could respond by cutting rates -and it can't lower rates if they are already near zero.

The rate increase could add $100 to the cost of servicing a mortgage for some households.  That's a high price to pay for a little monetary breathing room.

Given the above and Prime moving to 2.75%, it means that for every $100,000 of mortgage the average increase will be approximately $15 per month using an amortization of 35 years and from the above comment by the Bank of Canada, the expectations are that Prime may remain at 2.75% for a period of time until we have more economic stability. The next central bank review is on September 8, 2010.

Please also note that while the bank rate has increased 50 basis points over the past 2 months, discounts on variable mortgages have also been improving with the best today at Prime minus 0.70 or 2.05%. If we go back one year when prime was at 2.25%, variable mortgages were available at Prime + 0.20 which means that clients had a rate of 2.45%, therefore in real terms clients are better off today with rates at Prime minus 0.70 even though the Prime has increased. Great time to PURCHASE!

“Activity in June marked a healthy balance between the near record setting pace of June 2009 and the considerably slower activity witnessed in June 2008, a period of recession as we all know,” Jake Moldowan, REBGV president said.

Compared to June 2008, last month’s sales represent a 22.6 per cent increase over the 2,425 sales recorded that month, but are 30 per cent less than the 4,244 sales in June 2007. June 2010 sales also represent a 5.8 per cent decline compared to the previous month’s sales totals.

“We didn’t experience any record-breaking activity in June, but we did see a stable summer market,” Moldowan said. “The number of new listings coming on the market is not as dramatic as we saw over the previous three months and demand remains at a healthy level for this traditionally quieter time of year.”

New listings for detached, attached and apartment properties totalled 5,544 in June 2010, a 3.2 per cent increase
compared to June 2009 when 5,372 new units were listed, and a 21 per cent decline compared to May 2010 when 7,014 properties were added to the MLS®.

At 17,564, the total number of property listings on the MLS® increased 1.2 per cent in June compared to last month, and is up 32 per cent compared to this time last year.

“There has been less upward pressure on prices in our market the last few months, which has allowed prices to ease back from the record high numbers seen in April,” Moldowan said.

Over the last 12 months, the overall MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 11.8 per cent to $580,237 from $518,855 in June 2009.

Sales of detached properties in June 2010 reached 1,139, a decrease of 31.7 per cent from the 1,667 detached sales recorded in June 2009 and a 24.1 per cent increase from the 918 units sold in June 2008. The benchmark price for detached properties increased 13.4 per cent from June 2009 to $795,025.

Sales of apartment properties reached 1,258 in June 2010, a decline of 29.7 per cent compared to the 1,790 sales in June 2009 and an increase of 19 per cent compared to the 1,057 sales in June 2008.The benchmark price of an apartment property increased 9.7 per cent from June 2009 to $391,528.

Attached property sales in June 2010 totalled 575, a decline of 28.3 per cent compared to the 802 sales in June 2009 and a 27.8 per cent increase from the 450 attached properties sold in June 2008. The benchmark price of an attached unit increased 11.6 per cent between June 2009 and 2010 to $492,861.

The Real Estate Investment Network's report said Calgary experienced one of its best economic and real estate periods in Canadian history a couple of years ago but then entered a strong, and needed correction.

"During the economic downturn, Calgary's market is making a predictable correction resulting in slightly more affordable housing compared to recent years passed," said the report. "It was economically impossible for the market to continue at the pace at which it was heading and now finds itself adjusting to market realities.

"This adjustment period, as the market searches for its new foundation from which to build, should continue in 2010 as the provincial economy is poised for another growth spurt."

The report said migration to the city continuing to lead the country combined with the "renewed affordability" will help propel the local market over the coming years.

"We, fortunately, should not see the massive over-boom situation we previously witnessed as the market remains more in line with the fundamentals," said the report.

Following Calgary as the top Canadian real estate investment cities are Kitchener-Waterloo-Cambridge, Edmonton, Surrey, Maple Ridge, Hamilton, St. Albert, Simcoe Shores (Barrie-Orillia), Red Deer, Winnipeg and Saskatoon.

"Successful real estate investing is all about identifying a town or neighbourhood that has a future, not a past," said the report. "Sadly, many investors like to invest based on past performance; thus, they are constantly chasing the market."

As seen in the Calgary Post.

A Canadian Real Estate Association survey released Wednesday says sales are lower than expected, and predicts prices will remain flat for the rest of 2010.

"Today, home sales are down more than 30 per cent from that very high [winter] level," said Cameron Muir, an economist with the B.C. Real Estate Association.

Disincentives to buyers include higher interest rates, tighter credit and high housing prices, the association said in a release.

The survey results have prompted the Canadian Real Estate Association to revise its housing market predictions. The national forecast of just over 527,300 sales for 2010 has been reduced by 40,000.

The predicted number of sales in B.C. will drop by about 22,000 to about 80,000, the association said.

The record high B.C. home prices reached earlier this year also are forecast to ease off in 2011, dropping about 3.5 per cent.

"Our numbers tell us very clearly right now that prices have basically levelled at this point," said Jake Moldowan, President of the Real Estate Board of Greater Vancouver.

The province — and Metro Vancouver in particular — are heading toward a buyers' market, said Moldowan.

"We do know that our inventory levels are rising, which is going to create more choice for buyers and it'll give buyers more time to find a home," he said.

Purchasers of newly built homes will be eligible to apply for additional rebates up to a maximum of $26,250 as a result of the HST. If new home construction spans the July 1, 2010 HST implementation date, further rebates may be available.  The aforementioned rebates will largely offset the additional tax that is payable on homes costing less than $525,000.  However, the costs will be greater for those who have contracted to build or are purchasing a newly constructed home with a value greater than $525,000.

Many homebuilders have included the costs of HST and the associated rebates under the plan directly into the purchase price. In these cases, the rebates normally available to a homebuyer are assigned to the developer.  Information about whether the HST and rebates are included in the purchase price is included in the agreement of purchase and sale.

If the developer has not included the HST and associated rebates into the price of the home being built, homebuyers must apply to the federal government for the rebates and wait for the forms to be reviewed and approved.  As a result, these amounts must be financed by homebuyers during the intervening period.

Certain costs associated with buying and selling of homes will also be impacted.  Such items as legal fees and real estate commissions will now be subject to HST.

For further information about how the new harmonized sales tax may affect new home purchases can be found at this BC Government website link.  Included on the website is a new home purchase HST calculator

http://hst.blog.gov.bc.ca/faqs/new-housing-rebate/

Of course the best way to understand the impacts of the HST on homebuying plans is to contact a knowledgeable real estate lawyer who will be able to provide advice relevant to specific situations.