Home-buying intentions in Alberta have rebounded and are back to 2007 levels, according to an RBC home ownership survey released Wednesday.

The survey found that 35 per cent of Albertans are likely to purchase a home within the next two years, well above the national average of 27 per cent and up from 29 per cent in 2008.

“Home-purchase intentions in Alberta have not only shown big gains over last year, they also remain higher than any other region in the country,” said Don Peard, vice-president for RBC mortgage specialists. “More favourable mortgage rates and home prices may in part explain this increase, and Albertans still believe firmly in the long-term value of a home.”

The survey, conducted by Ipsos Reid, found that a large majority (72 per cent) believe it is a buyer’s market. Given current housing prices and economic conditions, most Albertans (57 per cent) believe it makes more sense to wait until next year to buy.

According to the survey, 86 per cent of those polled in Alberta said buying a home is a good or very good investment — the largest percentage in Canada.

Among those who plan to purchase this year or next, 39 per cent said they will do so because housing prices look attractive. Seventeen per cent cited the need for a larger home, and another 16 per cent said they will purchase because their current home does not meet their needs.
Seventy-one per cent said they plan to purchase resale and most (63 per cent) will opt for a detached house.

This news comes a few days after the Calgary Real Estate Board released its February MLS numbers showing activity in Calgary’s resale housing market picked up last month from a dismal January and average house prices stabilized.

There were 825 single-family home sales in February with an average MLS sale price of $415,568. Sales were up 50 per cent from the previous month, but down 34 per cent from February 2008. The average sale price was up just under one per cent from the previous month, but down nearly 12 per cent from a year ago.

In t he condominium market, there were 343 sales for the month of February at an average price of $268,971. Sales were up 52 per cent from January, but off by 39 per cent from February 2008. The average sale price decreased by less than one per cent from the previous month and was down nearly 14 per cent from a year ago.

In releasing the data earlier in the week, real estate board president Bonnie Wegerich said, “Undoubtedly, the global economic downturn has battered consumer confidence. But there are promising signs we are moving toward a more balanced and stable market. Sales are making some modest gains this month, prices are stabilizing and our inventory absorption rate is improving.”

Dan Sumner, economist with ATB Financial in Calgary, said the market is showing some signs of life.


“MLS home sales jumped to 1,431 units in February from 949 units in January. As a result, the inventoryto-sales ratio is returning toward a more balanced market with a ratio of 6.9, after peaking at 11.0 in December,” said Sumner.