In spite of the economic downturn, most Canadians still believe it is a home buyer’s market, with more first timers planning on purchasing their own homes, according to a study released Wednesday by the Royal Bank of Canada.

“The current economic environment does not appear to have dampened Canadians’ overall confidence in the housing market,” said Royal Bank spokeswoman Karen Leggett. “Canadians continue to have an overwhelming belief in the long-term value of a home and we’re seeing this in the buying intentions of many first time home buyers this year.”

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Residential housing sales in Greater Vancouver rose 94 per cent in February compared to the month before, with 1,480 sales registered in February compared to 762 sales in January, which was the slowest month for housing sales in 25 years. Over the past 10 years, February sales have typically surpassed January by an average increase of 53 per cent.

As expected, the Bank of Canada cut its key benchmark-lending rate Tuesday by another 50 basis points, to a record low of 0.50 per cent, to spur an economy that it acknowledged is deteriorating at a faster pace than expected, and indicated it would, if required, begin buying back government bonds in an effort to stimulate the economy.

In what analysts are calling a “bold” statement, the central bank said the benchmark rate is to remain at the current level, or be cut further, until there are “clear signs” that the economy is on the path toward reaching its potential — which it now envisages won’t happen until early 2010, a signal that the downturn could be longer than expected.

Most commercial banks followed the Bank of Canada’s move, cutting their prime lending rates by 50 basis points to 2.50 per cent, effective Wednesday.

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The first month of 2009 saw a continued reduction in the number of homes listed for sale in Greater Vancouver, while sales volumes in January were the lowest for that month since the early 1980s.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties declined 58.1 per cent in January 2009 to 762 from the 1,819 sales recorded in January 2008.

The record-breaking real estate market cycle in Greater Vancouver, longer than normal at seven consecutive years, ended in 2008 amidst global economic challenges. The change brought relief from rising prices that saw benchmark prices escalate from $357,770 for a single family detached home in December 2001 to $648,421 by December 2008.

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties decreased 35.3 per cent in 2008 to 24,626 sales compared to 38,050 sales in 2007. Property listings for the year increased 13.9 per cent to 62,561 compared to 2007 when 54,945 new properties were listed.

Residential mortgage consumers remain remarkably positive as they weather the financial storm, according to a report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP). Attitudes towards local conditions have shifted only slightly with 38 per cent of Canadians believing now is a good time to purchase and 32 per cent believing it is a bad time. Mortgage arrears remain low and steady at .28 per cent and an overwhelming 84 per cent of home owners are satisfied with their mortgages. The information was gathered by Maritz from an online survey of over 2,000 Canadians in mid-October and analyzed in conjunction with CAAMP Chief Economist Will Dunning.

Canadians are still in a mood to mortgage.

Nearly four in 10 Canadians still think that now is a good time to buy a house, even though the proportion who expect home prices to fall further has soared and the proportion expecting higher housing prices has plunged, according to survey results published Tuesday.

“Residential mortgage consumers remain remarkably positive as they weather the financial storm,” the Canadian Association of Accredited Mortgage Professionals said in releasing the results of a mid-October survey.

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They are temptations to buy a new home: offers of cash back, decorating allowances, commission payments, even new cars.

However, consumers face a potential financial sting if they accept such incentives without doing all their homework, according to the Mortgage Brokers Association of B.C.

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According to BCREA’s fall Housing Forecast, BC MLS® residential sales are forecast to decline 28 per cent from 102,805 units in 2007 to 73,700 units this year. A modest 4 per cent increase to 76,500 units is forecast for 2009.