Financing your first home purchase can be intimidating, especially with Canada’s frequently changing guidelines. However, there are resources available for Calgarians, including a variety of rebates, tax credits and opportunities for down-payment assistance.

Greg Miller, a mortgage professional with Smart Cap Inc., says prospective buyers should be patient, especially in Calgary’s current buyers’ market.

“There are a lot of options out there,” he said. “See a mortgage broker who can provide sound advice, help you come up with a budget and get a pre-approval. This way, your REALTOR® can help you check off as many boxes as possible within that budget.”

If you’re thinking about purchasing your first home, here are some resources that could help make your homebuying dream a reality:

Home Buyers’ Plan
First-time buyers across Canada can apply up to $25,000 from their RRSP to their down payment. This plan can be combined with a partner, if it’s also their first home purchase, to increase the money available for a down payment. Miller says its important to remember that buyers who haven’t owned a home in four years or more revert to first-time status.

First-Time Home Buyers’ Tax Credit
This plan helps first-time buyers recover closing costs, including legal fees, inspections and land-transfer taxes. With current rates, it works out to a $750 rebate, but it must be claimed within the first year of purchase. The rebate applies only to qualified homes, and can either be split between the qualifying buyers or claimed by only one.

GST New Housing Rebate
First-time buyers purchasing new-build homes can also qualify for a rebate on part of the GST. The amount is determined based upon the purchase price, which must be $450,000 or less.

Gifted down payment
An immediate family member may gift the down payment.

Flex down payment
Part of the down payment is borrowed from a line of credit or a credit card, but interest could be a deterrent. “The borrowed amount must go into the buyer’s liability section and impacts the debt-servicing ratio, which is used to determine whether the buyer qualifies for the mortgage,” said Miller.

Attainable Homes
Approved buyers can contribute as little as $2,000 to the down payment and Attainable Homes Calgary Corp. takes care of rest. If the buyer eventually sells, the value appreciation is split between the homeowners and Attainable Homes.

Elevated inventory levels compared to sales are causing prices to ease further in Calgary’s housing market.

Citywide benchmark prices totaled $426,300 in October, trending down for the fifth consecutive month and resulting in a year-over-year decline of 2.9 per cent.

“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” said CREB^® chief economist Ann-Marie Lurie.

“At the same time, housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments.”

Inventories and sales totaled 7,345 and 1,322 in October. This has resulted in months of supply of 5.6, above levels typical for this month. While some easing in new listing growth will help prevent further inventory gains, inventory levels remain near record highs for the month of October.

“With these types of market conditions, many potential buyers should be able to find the home that they are looking for with well priced listings appearing in certain price ranges,” said CREB^® president Tom Westcott. “Sellers need to manage expectations and have accurate data in order to be aware of what is selling in their community.”

For each of the property types, sales activity has improved in the lower price ranges, leaving most of those segments relatively balanced. However, the upper end of the ranges has seen significant gains in supply compared to demand, which is likely having more of an impact on prices in those ranges.

HOUSING MARKET FACTS

Detached

• Detached sales in October totaled 829 units, for an 8.6-per-cent decline, resulting in a year-to-date decline of 15 per cent. This is the slowest level of detached sales since the late ’90s.
• Year-to-date, the largest decline in sales occurred in the $600,000 – $999,999 price range, reflecting slow demand coming from move-up buyers.
• For the second month in a row, new-listing growth eased, helping prevent further inventory gains. However, as this segment remains oversupplied, prices continue to trend down.
• Detached benchmark prices totaled $490,200 in October. This is below last month and three per cent below last year. On a year-to-date basis, prices remain one per cent below last year’s levels.
• As of October, year-over-year prices have eased across all districts, with the largest declines occurring in the North East, North West, South and South East districts. This is likely a result of added competition from the new-home sector.

Apartment

• Year-to-date apartment sales have totaled 2,316 units, nearly seven per cent below last year. New listings have also eased by six per cent, helping reduce the amount of inventory in the market.
• Despite the easing inventories, the months of supply remains elevated at 7 months.
• Year-to-date apartment condominium prices have eased by 2.8 per cent and remain 14 per cent below 2014 highs. Declines occurred across all districts, with the steepest declines occurring in the North East, East and South districts.

Attached

• The attached sector has recorded year-to-date sales of 3,098. This is 15 per cent below last year and 14 per cent below long-term averages.
• Meanwhile, despite recent easing in new listings, October inventories are the highest level on record.
• The oversupply is affecting both the semi-detached and row sectors, which have seen prices trend down over the past 5 months.
• Year-to-date, row benchmark prices have averaged $298,140 this year, nearly two per cent below last year and nine per cent below previous highs. However, prices have remained relatively flat in both the City Centre and North West districts.
• As of October, semi-detached prices were $403,400, one per cent lower than last month and nearly three per cent lower than last year. Despite recent declines, year-to-date citywide prices remain relatively flat compared to last year. This was most due to gains in the City Centre, North East and East districts offsetting declines in the North West, South and South East.

REGIONAL MARKET FACTS

Airdrie

• Airdrie’s housing market continues to experience declining sales and increasing inventory compared to last year. Elevated supply levels have led to downward pressures on the benchmark prices for detached homes.
• Total year-to-date residential sales have reached 1,032 units, 11 percent below levels last year. Year-to-date, new listings have remained relatively stable, but remain well above long-term averages.
• Year-to-date average inventory levels are 19 per cent higher than. As a result, months of supply have been elevated, and presently stand at six months. This has translated to sustained pressure on benchmark price, with the year-to-date value of detached homes now sitting at $370,880, which is a year-over-year decline of nearly two percent.

Cochrane

• Year-to-date, residential sales have declined by 10 per cent, with 530 sales so far in 2018. These levels are comparable to similar periods in the past few years and higher than long-term averages.
• At 1,164 units, new listings have reached a historical peak for this period and well above long-term averages. Inventory levels in Cochrane for 2018 have been persistently elevated and are almost 17 per cent higher than the same period last year.
• This has started to place some downward pressure on prices. However, year-to-date detached benchmark prices have remained relatively stable compared to last year with a benchmark price of $424,900.

Okotoks

• Year-to-date residential sales have declined to 428 units in 2018, comparable to levels from 2011 and well below long-term averages.
• New listings are elevated at 936 units, which is eight per cent higher than last year’s levels and close to long-term averages. Inventory levels in October remain elevated with 232 units.
• Despite gains in the amount of supply compared to sales, Okotoks detached prices have seen some modest gains. Year-to-date benchmark prices for detached properties totaled $436,660, 1.25 per cent higher than last year.

With no change in the economic climate, Calgary’s sales activity totalled 1,272 units in September, a 13 per cent decline over the previous year and well below long-term averages. There was a pullback in sales across all product types, most notably the detached market.

“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand,” said CREB^® chief economist Ann-Marie Lurie.

“At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.”

Inventories totaled 7,941 units, pushing the months of supply to 6.25. This continuation in oversupply is placing downward pressure on prices. The unadjusted citywide benchmark price totaled $428,700 in September. This is nearly one per cent below last month and three per cent below last year’s levels.

“This is the new normal of Calgary’s real estate,” said CREB^® president Tom Westcott.

“Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations. This prevents them from purchasing something else.”

September sales have dipped, but third quarter figures generally point towards a slower decline in sales and some easing in new listings growth. This was not enough to impact inventory levels this quarter.

The Calgary economy continues to struggle, but there are some signs of improvement in the rental market, which could contribute to a slow reduction in overall housing supply,

HOUSING MARKET FACTS

Detached

• Year-to-date sales eased to 7,945 units, over 20 per cent below the 10-year average. Sales eased across all price ranges, except properties under $300,000, which posted a modest gain.
• Easing sales were met with some adjustments in new listings in September. However, inventories remain elevated and are higher than long-term averages in most districts.
• Months of supply rose to 5.5 months in September and continue to weigh on housing prices across all districts.
• Detached benchmark prices totaled $493,100 in September. This is a 0.8 per cent decline over last month and three per cent below the previous year.
• Prices have trended down in most districts in September. However, on a year-to-date basis, benchmark prices remain above last year in both the City Centre and West districts.

Apartment

• The apartment sector has seen the slowest decline in sales at six per cent so far this year. Like the detached sector, activity remains over 20 per cent below long-term averages, totaling 2,103 sales.
• For the fourth month in a row, new listings have generally trended lower than levels recorded last year. This has helped reduce some of the inventory in the market compared to the previous year.
• However, even with some reductions in inventory levels, the market continues to remain firmly in buyer’s territory when compared to the reduction in sales.
• With more supply than demand, benchmark prices for apartment condominium continued to ease in September, declining by 0.4 per cent over last month and 2.7 per cent compared to last year.

Attached

• The attached sector has recorded year-to-date sales of 2,814. This is 15 per cent below last year and 14 per cent below long-term averages.
• With no significant reduction in new listings, inventory levels remained elevated, pushing up months of supply to over seven months.
• Elevated levels of supply compared to demand persisted for both row and semi-detached product types. Like all other sectors, the oversupply has weighed on prices across all districts, except the City Centre, North East and East.
• While September semi-detached benchmark prices eased, year-to-date prices remained just above last year’s levels.  The recent oversupply has eroded some of the steps made toward price recovery last year.
• Row benchmark prices have averaged $298,667 this year, nearly two per cent below last year and nine per cent below previous highs. Despite the citywide pullback, row prices have remained relatively stable in the City Centre, North West and South East districts.

REGIONAL MARKET FACTS

Airdrie

• Airdrie’s housing market has exhibited buyer’s market conditions so far this year. This is largely due to weak economic conditions that have hindered growth in demand. This does not help alleviate excess supply and has led to a downward pressure on benchmark prices for detached homes.
• Year-to-date total residential sales in Airdrie have declined compared to last year and sit at levels comparable to activity recorded in 2012. Meanwhile, new listings have remained elevated, causing inventories to reach new highs for September.
• Elevated months of supply have continued to place downward pressure on prices. The year-to-date detached benchmark price averaged $371,244. This is a 1.7 per cent decline from 2017 levels and five per cent below previous highs.

Cochrane

• Affected by similarly weak economic conditions, the housing market in Cochrane has also experienced slight supply-side imbalances.
• Year-to-date sales in the town were recorded at 477 units, 59 units lower than 2017. Sales growth has been trending downward for most of the year. However, levels in 2018 are still higher than those recorded in 2015 and 2016.
• New listings in Cochrane have been persistently growing for most of the year and year-to-date levels are 269 units higher than long-term averages. Inventories have now reached a new September peak at 360 units, leading to elevated months of supply.
• The oversupply in the market has started to cause prices to trend down in the third quarter.  However, it has not been enough to erase earlier gains, leaving year-to-date benchmark prices just above last year’s levels. So far this year, detached prices remain four per cent below recent highs.

Okotoks

• Okotoks is facing supply pressures in the market due to slowing sales and increases in new listings.
• Despite the presence of oversupply, benchmark prices have managed to remain relatively stable in the third quarter compared to the previous quarter. At $436,422, year-to-date detached benchmark prices have averaged nearly one per cent higher than the previous year, but remain three per cent below previous highs.

Many would-be homebuyers find the home of their dreams, only to wonder, “can I afford it?” Canada Mortgage and Housing Corp., as well as many major banks, recommend spending no more than 30 per cent of income on housing, including mortgage (principal and interest), property taxes, insurance and utilities. To help, we did the math for a typical detached home in each region of the city.

City Centre

• Required Down Payment: $34,461
• Recommended Household Income: $155,760

North East

• Required Down Payment: $18,738
• Recommended Household Income: $87,520

West

• Required Down Payment: $36,653
• Recommended Household Income: $165,240

South

• Required Down Payment: $23,670
• Recommended Household Income: $108,920

North

• Required Down Payment: $21,529
• Recommended Household Income: $99,640

North West

• Required Down Payment: $26,971
• Recommended Household Income: $123,240

South East

• Required Down Payment: $22,411
• Recommended Household Income: $103,440

East

• Required Down Payment: $17,539
• Recommended Household Income: $82,280

*All calculations assume for a five per cent down payment (which necessitates mortgage insurance), 25-year amortization period, 3.50 per cent mortgage rate and no outstanding debts. Estimated property tax, home insurance and utility cost values are factored into the calculations (via www.ratehub.ca/mortgage-payment-calculator). Recommended income is based on calculation of housing expenses (mortgage, utilities, property tax and home insurance) as 30 per cent of gross income. YTD Benchmark Prices are accurate as of Sept. 1, 2018.

Easing sales, gains in new listings and elevated inventory levels continue to slow Calgary’s recovery in the housing market in August.

Persistent oversupply in the Calgary housing market continued to weigh on prices in August. Citywide benchmark prices edged down over previous months by 0.8 per cent and are 2.4 per cent below last year’s levels.

“Calgary’s employment market has persistently high unemployment rates at 7.9 per cent and recent job losses in full time positions. The struggles in the employment market are one of the factors weighing on our local housing market,” said CREB® chief economist Ann-Marie Lurie.

“SELLERS NEED TO BE WELL INFORMED TO BE COMPETITIVE. THEY NEED A GOOD UNDERSTANDING OF WHAT HAS BEEN SELLING AROUND THEM AND HOW THEIR PROPERTY COMPARES TO HOMES THAT HAVE SUCCESSFULLY SOLD.” – TOM WESTCOTT, CREB® PRESIDENT

“A slow recovery in the energy sector combined with tighter lending conditions and competition from the new home sector are also contributing current housing market conditions.”

Citywide sales totaled 1,490 units this month, down nearly seven per cent from last year and 14 per cent below long-term trends.

Sales and price declines were not consistent across all districts and product types. Prices have recently trended down across most areas based on year-to-date figures, but have remained comparable to last year’s levels in the City Centre and West districts of the city.

“Both buyers and sellers need to be realistic about their objectives. Buyers need to be aware that price changes differ depending on what and where you are buying. The decline in sales does not mean price declines across the board,” said CREB® president Tom Westcott.

“Sellers need to be well informed to be competitive. They need a good understanding of what has been selling around them and how their property compares to homes that have successfully sold.”

HOUSING MARKET FACTS

Detached

• Year-to-date detached sales eased across each district. Elevated inventory levels caused months of supply to remain just below five months in August and continued to weigh on housing prices across all districts.
• Detached benchmark prices totaled $497,000 in August. This is a 0.74 per cent decline over last month and 2.6 per cent below the previous year.
• Prices have trended down in all districts in August, however, on a year-to-date basis prices remain above last year in both the City Centre and West.
• Year-to-date average detached benchmark prices have eased by 0.56 per cent over the previous year, reducing some of the price recovery from last year.

Apartment

• Year-to-date sales totaled 1,892 units, seven per cent below the previous year. However, sales did not ease across all districts. Sales in both the North East and North West districts remained slightly higher than levels recorded last year.
• New listings in the apartment sector eased compared to the previous year, preventing more significant gains in inventory levels. However, oversupply in this sector persists, causing further price declines.
• Year-to-date city-wide prices eased by nearly three per cent, with the largest declines occurring in the North East, South and East districts. Overall prices remain nearly 14 per cent below 2014 highs.

Attached

• Like the apartment sector, sales have eased in the attached sector. However, year-to-date sales have improved in some districts of the city for semi-detached and row product. Semi-detached sales improved in both the North West and West districts.
• Row sales remained relatively stable in both the North East and East districts of the city.
• Oversupply in the semi-detached sector has placed some downward pressure on prices this year, but year-to-date average benchmark price remains higher than last year in the City Centre, North East and East districts of the city. Gains in these areas were enough to offset declines in other areas, keeping semi-detached prices one per cent higher than last year.
• Year-to-date row prices eased by 1.5 per cent over last year. However, price movements ranged from relatively stable levels in the City Centre and North West to declines of nearly seven per cent in the North East district.

REGIONAL MARKET FACTS

Airdrie

• Sales activity in Airdrie continued to ease compared to last year totalling 851 units so far this year.
• Despite some of the recent pullback in new listings, year-to-date new listings remain just above last years levels keeping inventories elevated at 597 units.
• The persistent oversupply in the market started to weigh on homes prices. Detached home prices totaled $366,900, 0.7 per cent below last month and 3.4 per cent below last year. When considering year-to-date averages, the benchmark price is 1.5 per cent below last years levels.

Cochrane

• Year-to-date sales activity in Cochrane totaled 431 units. This is a decline over the previous year, but activity remains comparable to activity recorded over the past five years. This makes it a centre that has not seen the same pullback in demand seen in many other areas.
• The challenge in the Cochrane area is the continued rise in supply. New listings continue to rise and are well above normal levels for the area. This has pushed up inventories to new highs, causing the months of supply to rise.
• The excess supply in the area is starting to weigh on prices. Detached benchmark home prices in August edged down over the previous month to $426,100. Despite the recent easing, prices remain comparable to the previous year both for the month of August and year-to-date average figures.

Okotoks

• Easing sales in Okotoks were met with further gains in new listings causing inventory levels to edge up to 280 units.
• Recent gain in inventory compared to sales have placed some downward pressure on prices in the area. However, the easing was not enough to cause year-to-date prices to fall below last years levels.
• Detached benchmark prices averaged $436,350 so far this year, just above last year’s levels.