Segment rallies as overall market continues to face challenges

Once considered out for the count, Calgary's luxury housing sector has seemingly rallied, posting a double-digit sales increase so far in 2016, according to new statistics.

Home sales in the city valued at more than $1 million totalled 118 over the first three months of the year – up more than 20 per cent from 98 during the same period last year. In March, $1-million-plus sales totalled 54, up from 49 in 2015.

This comes as CREB® released its most recent monthly housing summary, showing overall sales in the city this year have declined so far this year by nearly 10 per cent.

"While the $1-million-plus segment accounts for a small share of the activity, there has certainly been some improvement in sales over last year," said CREB® chief economist Ann-Marie Lurie.

Calgarians playing a role in driving home sales outside of the city

Founded largely by intrepid pioneers who ventured west on the then fledgling Canadian Pacific Railway, Calgary is now seeing another western excursion.

With home sales in the city facing downward pressure as a result of a weakening labour market, markets west of the city – small and large – are seeing increased activity, thanks in part to Calgarians continued urge to drive westward.

From as near as the Rocky Mountains to as far as the West Coast, Calgarians are being pointed to as contributing factors in real estate markets outside of the city.

As the developer behind Canmore's Spring Creek, a $38-million "active lifestyle community" for seniors, frank Kernick has seen the impact of Calgary buyers outside of the city.

"From the demand point of view, the last three months in Canmore have probably been the strongest January, February and March I've seen in 10 years," said Kernick.

Bearspaw, Springbank appealing to a more diverse sect of buyers

Long admired for its opulence, the communities of Bearspaw and Springbank just outside of Calgary's northwest border are now attracting a wider range of buyers who are looking for a bit of everything, say industry professionals.

"Years ago, the area was big into horse culture – everyone wanted to buy a pony for their teenaged daughter. Now, it is more about organized sports, family vacations," said Jeff Neustaedter, a real estate professional whose office last year saw 35 transactions above the $1.1-million mark in Bearspaw alone, ranging from 40-hectare sites to secluded parcels.

While the area between Calgary and Cochrane has always been known for its stately homes, McKinley Masters Custom Homes owner Mark Kwasnicki noted homeowners want more these days – they want space to stretch their legs, but also to get away from the hustle and bustle of city life.

New home industry to impact inventory, prices

Homebuyers could be in for more good news over the next several months as industry experts predict oversupply from the new home industry will create more selection and overall price softness.

"With the number of units still under construction, we do expect inventories to continue moving higher in the next couple of months," said Richard Cho, market analyst in Calgary for Canada Mortgage and Housing Corp. (CMHC). "I think the impact that would have on the overall housing market and the resale market is more choice for buyers."

Cho added the number of units still under construction remains elevated, which will lead to the rise in inventory levels.

More than 90 per cent of Airdronians feel safe

Airdronians are generally a happy bunch – at least with local amenities and services, according to the City of Airdrie's 2016 citizen satisfaction survey.

Residents' rating of overall quality of life, quality of services and efficiency of services remained strong, with no significant change from 2015.

To read the full survey, click here.

Small-volume builders say they've been largely unaffected by the economy

Alberta's economic downturn is not impacting all areas of the housing industry in the same way, according to small-volume builders who say their niche is, in fact, busier than ever.

"We are pretty much unaffected by the economy," said Brian Cook of Cook Custom Homes, a Calgary-based micro-builder that designs and builds five homes per year. "There is still money in Calgary and those who work in economy-friendly industries are building homes."

Cook noted one of the only differences he's seeing is in buying strategy, especially with spec homes. When the market was hot, buyers would tour a home once and put in an offer.

Unemployment impacting housing activity

Home prices declined further in March as economic conditions weigh on Calgary's housing market, according to CREB®, which released its monthly housing summary today.

Calgary's benchmark price totaled $442,800 in March, a 0.49 per cent decline over February and 3.51 per cent lower than levels recorded last year.

"With no improvement in the labour market, it's no surprise that we continue to face downward pressure on housing sales activity and prices," said CREB® chief economist Ann- Marie Lurie.

Tips heading into patio season

Spring has sprung, meaning the handyman in your family is likely itching to tackle that outdoor project that's been nagging at him or her for months.

With patio season in sight, here are five tips from the City of Calgary's Planning and Development department before tackling your spring reno project:

Backyard decks
Before you start, the City suggests determining whether you're building a pergola or roof structure that is attached to your house. If it's an extension to the house, it's considered an addition, in which case you will need to apply for a building permit. For uncovered decks that are not located on the same facade as a basement walkout entry, the maximum height is 1.5 metres in a developed area. In both the developed and developing areas, the height of a deck cannot exceed 0.3 metres above the main floor level of a house.

Move comes after SWBRT confrontations

The City of Calgary has launched a new online tool to give citizens and stakeholders an opportunity to have a dialogue on City projects.

This comes less than a month since the City ceased face-to-face consultations following allegations that staff members were verbally and physically assaulted during community consultations for the Calgary Southwest BRT.

"This is a new way for Calgarians to learn about and provide input on City projects," said Cindy Pickett, director of customer service and communications for the City.

Stability fears have no support, says Fortress

According to a new report from Fortress Real Developments, some "hot button" threats to housing market stability in Canada — including foreign investors, mortgage fraud and over leveraged buyers — have "no comprehensive statistical support."

"No government agency or private entity publishes data on international homebuyers or their source of funds," said Ben Myers, senior vice-president of market research and analytics at Fortress, and author of the report.

"It is impossible to fully assess the impact of foreign buyers, inappropriate mortgage activity or the extent to which Canadians are responsible borrowers based on the currently available data. With the limited information out there, and our own survey research, we feel the fears of a major house price correction are overblown."