Prices generally peaked mid2007 and have generally been softer since.

Question: What are the five top tips CMHC would give a homebuyer, in this market, when they are looking to buy?

Answer: The time to buy or sell a home is a matter of personal choice.

What are your needs? What are your plans for years to come? What is your financial situation?

There is no single answer and each individual can have different motivations and needs.

But here are some general tips (these are not in any particular order):

Buy within your means: • Know your maximum budget and what you feel comfortable borrowing.

• Get prequalified for mortgage financing.

• Check out CMHC’s mortgage calculator at www.cmhc. ca. • Consider closing costs. • Consider other costs (window treatments, appliances, moving expenses, condo fees, maintenance expenses, home insurance, etc.)

• Shop around for competitive mortgage rates.

• Take advantage of the federal government’s Economic Action Plan, if applicable.

• First-time buyers can claim up to $750 tax credit on their 2009 income tax form.

• First time home buyers can access their RRSP to the amount of $25,000 topurchase or build a home.

• Take advantage of Alberta’s new energy efficiency programs.

Work with reputable industry professionals, such as licensed realtors, builders, mortgage agents, mortgage specialist, lawyers, home inspectors, etc.:

• Find a compatible realtor that knows the neighbourhood(s) you can affordand want to live in.

• Ask for references, ask about qualifications.

Become knowledgeable about the process:

• Check out CMHC’s Homebuying Step by Step and/or Condominium Buyers Guide. • Visit www.cmhc.ca.

Familiarize yourself with what is available in the market and at what price point:
• Tell family, friends and work colleagues that you’re looking for a home.

• Check the new homes section in the newspaper, go online (such as www.realtor.ca or www.mls.ca), real estate news and other publications available at newsstands, convenience stores and retail outlets, visit model homes in new developments, etc.

• View a variety of homes to get a feel for what you get at your price point.

• Learn as much as possible about the home you want to buy.

Open yourself to a greener home and/or a neighbourhood with sustainable features:

• A sustainable neighbourhood offers you a village atmosphere, value for money, a place where you can make your daily trips on foot, bike or bus, safety, a variety of housing choices for various lifestyles and lifecycles, clean air and water, etc.

• Many houses have an Energy Rating tag that describes the energy efficiency of the house.

The rating is usually posted on a sticker on the electricalpanel and is given on a zero to 100 scale.

The higher the rating, the more energy efficient the house is — and the less it costs to operate.

• Check out the newly announced Alberta incentives for energy efficient homes.

Question: Are there any things buyers should keep in mind when they are in a buyers’ market as opposed to a sellers’ one?

Answer: Buyers’ market conditions tend to be characterized by more sellers relative to buyers, so sellers are receptive to taking less than the asking price.

The Calgary sales to new listings ratio in March 2009 was 47.4.

Values under 40 indicate a buyers’ market, values above 55 indicate a sellers’ market, and values between 40 and 55 indicate a balanced market.

While the market classification impacts housing prices, average prices are also impacted by the mix or type of homes sold in any given month.

For example, while demand for single detached homes has slowed, demand for more inexpensive housing has increased.

So, familiarize yourself with what is out there and look at a few different properties before making an offer or decision.

In a buyers’ market, consumers are in the driver’s seat and are better able to negotiate prices given more abundant choice in the marketplace.

Expect to negotiate. The process of making an offer, receiving a counter-offer and then revising it again is not uncommon.

Consider negotiating extra items (chattels) such as window coverings, appliances, etc., into the purchase price, or negotiating closing/possession dates.