Monday, September 14, 2009

Real Estate Prices Stabilizing in Alberta

"The difference in the resale housing market now, compared to the beginning of the year, is night and day and nowhere is this more evident than in the West," said Dale Ripplinger, association president.

"Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher."

A five-year fixed-rate mortgage, the most popular among consumers, is still available for less than four per cent at some financial institutions.

Variable-rate mortgages, tied to prime, remain at about three per cent and are not expected to rise until June. The Bank of Canada has pledged not to change its lending rate until then -- but it is not an ironclad guarantee.

The low rates seem to have worked and have the market even hotter than in 2007, a record year. July sales in 2009 were 3.9 per cent above the previous July high set in 2007.

It has been a stunning reversal for a real estate market that had almost ground to a halt over the winter." Read More

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