FORMERLY THE ROCKY VIEW FIVE VILLAGE WEEKLY
Volume 35, Number 29	OFFICIAL NEWSPAPER FOR THE MD OF ROCKY VIEW #44	Tuesday, July 15, 2008
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Increase in residential real estate listings impacts MD
Liz Lindgren-Kubitz

The real estate market in Rocky View is feeling the pinch of slowing sales due to a glut of homes on the market.

One Rocky View realtor revealed that her inventory of property listings totals about $5 million, which is way up over this time last year.

"The market has kind of taken a whole flip," said Irricana-based realtor Dani Thomas, who works in partnership with her husband. "We have close to 20 current listings right now — last year at this time we only had two."

Rural listings in the MD of Rocky View have grown from 373 at this time last year to 535 active rural listings at the end of June this year, according to statistics from the Calgary Real Estate Board (CREB).

These statistics also show that the number of properties sold in the MD are down from 67 sold in June of 2007 to 31 sold in June, 2008.

"Where we’re seeing an issue right now is with first-time buyers holding out a bit – I think they’re scared," said Thomas.

The agent believes a recent announcement by Canadian Mortgage and Housing Corporation (CMHC) could add to the first-time-buyer jitters.

This fall CMHC will be removing 100 per cent financing on new homes and will instead offer to finance only 95 per cent, said Thomas. As a result, new home buyers will need to cough up five per cent of the purchase price on a home before CMHC will provide financing.

She added that 40-year mortgage amortization rates are being reduced to a 35 year maximum amortization rate.

"From now until Oct. 15 is going to be critical," said Thomas. "You hear lots of negative things, but I think the market is very positive right now and it’s a great time to buy."

Thomas said many of her clients selling their homes are now second and third time homebuyers who are either being transferred or wanting to move to an acreage property. Many of these clients were placed in first homes utilizing CMHC’s 100 per cent financing.

"We did place a lot of people in homes," she said. "Now these same clients are coming in with $30,000 equity towards a new purchase."

However, the conundrum, as she sees it, is getting those first timers to make the leap into home ownership.

Thomas noted that a CREB announcement revealed month-end inventory was up 47 per cent over the same time last year.

At the end of June, 2008 the City of Airdrie had 519 listings and 137 properties had been sold, according to CREB statistics. At the same time last year, Airdrie only had 261 listings but 105 had ben sold.

The Town of Chestermere has seen active listings double since June last year, while sales have decreased.

Listings in the Town of Crossfield have tripled since the same time last year, although sales remain the same.

Cochrane had 253 active listings at the end of June, up from 146 at the same time last year.

"It’s absolutely a buyer’s market," said another real estate agent who works in Cochrane and area. "There are lots of properties for sale at decreased prices."

This realtor, who wished to remain anonymous, attributed buyer wariness to the uncertainty in the economy and the rising fuel prices.

"People are also waiting for the government to make some decisions with respect to interest rates," she said.