Two recent housing reports — one from ReMax and the other from RBC Economics — indicate housing markets across the country have strengthened in the second quarter of 2009, after seven months of uncertainty and weak sales performance.

The ReMax report says more balanced market conditions emerged in the last three months, ending the hold buyers have enjoyed since last September, with the two largest markets, Toronto and Vancouver, recording MLS sales in June that were among the highest in history for each city.

All of Canada’s major markets began showing signs of recovery in March, with sales escalating in April, May and June, with most centres 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, ReMax Western Canada.

“Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news. In addition, we’ve seen sale price-to-list ratios climb across the country, rising as high as 105% in some communities.

Vendor incentives have also come off the table, both for resale and new housing stock.”

The Calgary market has had a dramatic return to being balanced and may be headed into a sellers’ market.

In Januar y, single family home inventory listed through the Calgary Real Estate Board in Calgary Metro stood at 7.3 months, with condo inventory at 8.6 months, both strong buyers markets.

In June, single-family inventory was only 1.8 months, and condo inventory down to 2.4 months, bringing the market close to being dominated by sellers.

The turnaround was brought on by a lower number of listings on MLS, combined with six consecutive months of sales increases in Calgary Metro, highlighted by June’s sales being 30.5% higher than June last year.

Sales are up as affordability has returned to the Calgary market, says the RBC Economics Housing Affordability measure, which captures the proportion of pre-tax household income required to cover the costs of owning a home.

Calgary led all major markets with a decline of 24% in monthly costs.

“Calgary’s housing market is indeed showing positive signs, as a huge drop in the cost of homeownership over the past two years has led to enhanced affordability,” says Robert Hogue, senior economist with RBC.

“There is still reason for caution with rising unemployment — which surged to a 12-year high this spring — and declines in home prices. However, it appears that a recovery may be on the horizon.”

Sales in Calgary, and across the country, have increased due to a potent cocktail of incentives, made up of the lowest mortgage rates in history, federal government stimuli and prices returning to a sustainable level, which have brought first-time buyers back into the market.

As for the balance of the year, in the ReMax report, Ash expects sales activity to remain better than average this summer, as those who paused over the past six months dive back in before interest rates rise. Momentum will continue to build into the fall, with overall 2009 sales edging slightly ahead of 2008 levels by year-end.