Assisted by low, stable mortgage rates, first-time homebuyers in Calgary’s metro area accounted for much of a 39-percent jump in resale housing in January versus year-ago. This information from the Calgary Real Estate Board (CREB) demonstrates that the real estate market is continuing a steady rebound.

Diane Scott, CREB president, said that condominium resale transactions January-to-January increased by an astounding 67 percent. She said that reasonable mortgage rates coupled with reduced property prices have contributed to greater affordability.

According to CREB, 762 single-family homes sold in January as opposed to 550 in January 2009. Condo activity was also strong, with 376 units changing owners in January versus only 225 selling a year ago.

Increases were seen in the average sale prices of detached dwellings and condos, with prices of $441,000 and $283,000, respectively. Scott said that for the immediate future, average prices of homes are more representative of average household incomes. She said that the gap is narrowing between renting and ownership. First-time buyers might continue to be tempted to switch from paying rent to paying their first mortgages.

A number of mortgage rates will start increasing after July, according to Canada Mortgage and Housing Corporation. An additional 50 to 75 basis points are predicted for current mortgage rate levels. As perspective one percent is composed of 100 basis points.

Scott said that in January of last year, the market was bogged down by the lowest sales seen in years, as well as an oversupply of ten months’ worth of inventory. She said that 2010 has begun at a much stronger level.