With an expected increase of Canada's overnight lending rate in 2014, first-time homebuyers will want to take notice of the escalating cost of borrowing when it comes to the purchase of a home.

For the most part, the Canadian overnight rate has remained at one per cent since September 2010 to counter world markets affected by recession. Some buyers may be expecting those low interest rates to last for a while. In a report released by BMO, one-third of firsttime buyers polled expect interest rates to stay the same over the next five years.

Too soon to see any impact that flood would have on resale activity

City of Calgary monthly residential sales totaled 2,317, a six per cent increase over June 2012 figures, and nearly five per cent higher than levels recorded in the first half of 2012. However, the
impact of recent flooding is expected to trickle into the housing statistics over coming months.

Calgary homes changed hands at a brisk pace in June, according to statistics mostly reflecting pre-flood market conditions.

The month leading up to Calgary's flood disaster saw 2,317 sales in the city, a six per cent increase from June 2012.

While global housing activity in early 2013 has been mixed, Canada's housing demand remains healthy said a Global Real Estate Trends report released by Scotiabank.

The report found in the majority of world markets housing conditions are "fairly steady" and average home prices relatively flat. However in countries like Asia and Latin America as well as the United States, home prices are again accelerating supported by a stronger domestic economy. In other countries, namely struggling nations of southern Europe, price declines are continuing.

While May brought plenty of falling rain to Calgary, sales in the city's real estate industry were headed solidly in the other direction.

Driven in part by an increased demand in the condominium market, Calgary residential monthly sales improved over the previous year in May, exceeding expectations, although slowing from 2012's double digits.

Calgary and Alberta seemed to have missed the memo on declining house starts in Canada.

Starts decreased across the country in March and April, but not in the Calgary area, where starts increased both months.

The Canada Mortgage and Housing Corporation (CMHC) reported 11,323 starts in the Calgary Census Metropolitan Area in April compared to 11,242 in March, a trend of sixmonth moving average of the monthly seasonally adjusted annual rates (SAAR) of total housing starts.

While MLS® home sales in Canada decreased by 2.1 per cent between January and February, sales in Calgary increased more than seven per cent.

There were 1,591 sales in Calgary in January 2013 followed by 1,709 in February. Nationally, not seasonally adjusted activity decreased 15.8 per cent compared to February 2012.

Alberta's housing market remains one of the best in the nation, according to one of Canada's biggest financial institutions.

In a report released by TD Economics, Calgary was singled out as an "out-performer" for long-term rate of return, along with Vancouver, Victoria, Edmonton and Toronto.