ATB Financial chief economist Todd Hirsch recently spoke at CREB®  to outline some of his predictions for Alberta in 2016. During the talk, Hirsch discussed some causes for the current state of the provincial economy and factors that will need to change before Albertans see a rosier economic picture. CREB®Now examines some of the main talking points discussed during his visit.

Earnings:

Rather than simply pointing out the decline in the price of oil, Hirsch focused on the wages being earned by some Albertans as one of the factors affecting Alberta's current situation. Playing a massive role in province's employment picture, the average weekly earnings for Albertans had improved by 48 per cent over the last 10 years compared to 29 per cent nationally, with workers in the energy sector taking home 56 per cent more than a decade ago.

First breaking ground in 2008, the reviltalization of Calgary's "newest, oldest" community is now beginning to come to completion. Recently welcoming the area's first new occupant, the area is eventually expected to welcome more than 11,000 Calgarians to what was once one of the city's most notorious neighbourhoods.

CREB®Now takes a look at the rebirth of the neighbourhood, how it came to be, and what it will become.

History

The site of Calgary's first Northwest Mounted Police detachment, which would later become Fort Calgary, East Village was originally the centre of a then-fledgling Calgary. Later falling into decline, the area would be largely neglected, with the city's medical officer declaring it "skid row" in 1941. With various revitalization projects failing to take hold, the community would remain a blight on the city until the Calgary Municipal Land Corporation's (CMLC) revitalization project began in 2008.

Features holding their own in resale

At first glance, Paula McGarrigle's Marda Loop home looks rather ordinary — a beautiful craftsman-style house not unlike many others throughout the city.

In this case, looks are deceiving. Beneath its unassuming exterior, the home contains an assortment of features designed to make it as energy efficient and green as possible. On the EnerGuide 0-100 scale, which measures a home's energy performance, McGarrigle's home has a rating of 86.

"People are quite stunned that it's an energy-efficient home," McGarrigle said. "It looks like it's been here for 100 years."

Green homes like McGarrigle's are increasingly common in Calgary and across the country. Their popularity has surged as sustainable technologies – from simple energy-efficient appliances and light bulbs to complex mechanical systems and renewable energy sources – have become less expensive and homebuyers become more concerned with their environmental footprints.

'Downward pressure' bringing added choice, affordability to Calgary market 

Amid ongoing uncertainty in the province's energy sector, sales in Calgary's resale residential housing market declined by 27 per cent in August over the previous year to 1,643 units, according to CREB®'s monthly housing summary.

While the decline in sales was evident across all price ranges, homes $600,000 and up saw the most significant decline in absorption rates (sales versus new listings) compared to last year. Year-to-date new listings in this range were similar to levels recorded last year, yet sales activity represented only 18 per cent of all the sales last month, down from nearly 20 per cent last year.

During the first eight months of the year, sales in Calgary's $1-million-and-up category have declined by 35.64 per cent compared to last year, while sales of $3 million and up have dropped by 57.89 per cent.

Housing market offering opportunities for would-be buyers

For Donna Williams, finding the right home was a relatively straight-forward and stress-free endeavour.

She had been renting a turn-of-the-century two-storey refurbished home built in the inner-city neighbourhood of Sunalta. Recently divorced, she wanted a place to land where she would be surrounded by friends and community, and where her university aged children could park themselves when they came to visit on school holidays.

"I knew that financially it didn't make sense to be paying rent when interest rates were so low," said Williams, who recently returned to school to study English at the University of Calgary.

But she was comfortable in the home and didn't feel any huge sense of urgency to buy — until, that is, her landlords, personal friends, bequeathed the home to their adult child and her partner.

Smaller condos gaining popularity in Calgary

Don't call it a trend. Yet.

Whether you label them micro, shoebox or nano condos, housing units under 500 square feet in size have tested here and proven popular with younger, inner-city buyers — and with savvy investors renting to that same demographic.

But while other cities such as Toronto and Vancouver have already offered condos as compact as 200 square feet, Calgary's smaller living units tend to sit at more than twice that size – and they are included in developments with larger unit offerings.

August sales activity falls below long-term averages

Calgary's residential resale housing market recorded further easing in absorption rates in August due to weaker sales activity.

Sales in the city declined by 27 per cent to 1,643 units last month relative to the same time last year and 12 per cent below 10-year averages.

"Persistent weakness in the energy sector weighed on sales activity this month, which once again retracted to levels well below the norm for the city," said CREB® chief economist Ann-Marie Lurie.

Canadian Tire's decision to open a new location in the Beltline marks the latest in a series of announcements where major retailers are refocusing on the Calgary market. And while past once confined to the suburbs, this new round of retailer interest is bringing their offerings to new and once unconventional neighbourhoods.

CREB®Now takes a look at five of the latest announcements.

Canadian Tire:
Formerly accessible only to those willing to hop in the car, Canadian Tire will be bringing its wide range of automotive, sports and leisure and home products to the newly redeveloped 90,000-square-foot, three-storey Mount Royal Village building at 8th Street and 16th Avenue S.W. Scheduled to open in "about" two years, the Canadian Tire Express store will be similar to one in midtown Toronto, which offers about a quarter of the goods available in the retailer's largest stores.

Calgary homeowners capitalizing on market by going bigger

When Stephanie and Robert Morgan decided to make a step up from their Evanston home, their biggest concern was space for them and their growing family.

After looking at several "lateral" options that would have seen them gain little in the way of square footage, the Morgans decided to make the jump to something significantly bigger

"We really wanted a place that would feel like a home for each member of our family – somewhere where we could each have our own space but also enjoy the common areas without tripping over each other," said Elizabeth, who, along with husband Robert, shares the home with their four-year old daughter.

Americans and Albertans alike looking to the mountains for recreation homes

The old truism of "location, location, location" applies as equally to recreation property as it does to a good piece of primary real estate. And it may become even more important in a tight economy.

Alberta's recreational property market — much of it located in the mountain areas and lakes within an hour and a half of Calgary — continues, at least for now, to be fairly strong.

With the decreasing Canadian dollar, American buyers coming from a healthier economy are once again looking at Alberta property while local buyers may be seeking cottage life closer to home.