Prices expected to remain stable

Continued weakness in housing demand will limit downward pressure on supply levels and cause prices to ease in the second half of the year, CREB® said in its 2015 mid-year forecast. Despite this anticipated retraction, Calgary's benchmark prices are only expected to decline by less than one per cent on an annual basis.

"Further job losses are expected in the second half of the year," said CREB® chief economist Ann-Marie Lurie. "These employment changes combined with overall weakness and slower than anticipated recovery of oil prices is expected to keep housing demand relatively weak for the rest of 2015. However, with the initial shock of oil price declines having dissipated, the pullback in sales activity in the second quarter is not expected to be as dramatic as the first part of the year," said Lurie.

Overall sales activity in the city of Calgary is forecasted to total 19,780 in 2015, a 22 per cent decline relative to last year, but only six per cent lower than average activity over the past five years.

Based in Calgary, Jeff James is vice-president and head of TD's Commercial Real Estate Group for the Prairies. A graduate of the University of Manitoba, James is also a black belt and instructor in Brazilian Jiu Jitsu. He is currently in the process of opening his own school, which will focus on teaching an anti-bullying program for kids aged nine to 15. CREBNow recently sat down with James to discuss everything from the current market to what he thinks is Calgary's best-kept secret.

CN: Could anyone have predicted the current market?

JJ: If you look back at the economic forecasts from the last 12 months, you can see that no one was predicting oil would drop from approximately $100 to $50 per barrel. In addition, the Bank of Canada's decision to drop interest rates in January took most economists by surprise. So I think it's safe to say people were caught off guard.

CREB president Corinne Lyall has joined a litany of other Calgary names in the new campaign In It Together.

"With all the negative talk in the media and the community about the price of oil and the economy, we believe that it's time to turn the tables on the situation and focus on solutions," reads the website.

In It Together is the "brainchild" of Jeff Bradshaw, owner of video agency V Strategies, with the co-operation of his staff as well as Calgary Economic Development.

Joining Lyall in making comments on the site are names such as Mayor Naheed Nenshi, Phil Robertson of Phil & Sebastian Coffee Roasters and Steve Allan, chairman of Calgary Economic Development.

See Lyall's video below:

The Bank of Canada surprised many Canadians last week when it reduced the overnight interest rate from one to 0.75 per cent.

Bank of Canada governor Stephen Poloz cited plummeting oil prices as motivation behind the drop, which represents the first time the bank has changed the rate since September 2010.

"The drop in oil prices is unambiguously negative for the Canadian economy," he said.

"Canada's income from oil exports will be reduced, and investment and employment in the energy sector are already being cut."

After record setting few years, migrants to Calgary expected to decrease in 2015

After consecutive years of record setting net migration, the number of Canadians making their way to Calgary is expected to ease over the next while.

CREB® chief economist Ann-Marie Lurie said a pullback in in-migration is expected in part due to record setting numbers set in the past few years.

"[2012 and 2013] were extremely strong; we had over 40,000 migrants into the Calgary CMA, so not just the city of Calgary, but surrounding areas. That's a very strong number, that is more than double typical levels," she said.

Equilibrium coming to Calgary's housing market in 2015 says annual forecast

The New Year is set to bring some balance to Calgary's housing market, meaning more choice for buyers.

"With more supply in the market expected this year, buyers will likely have more alternatives in all price ranges," said 2015 CREB® president Corinne Lyall. "It's a nice scenario for buyers, but it also means sellers will likely have to adjust their price expectations and be realistic about the amount of time their home will be on the market.

"A REALTOR® can help navigate market conditions and real estate options, which are always unique to each customer," she added. "While challenges in the market can raise concerns for purchasers and sellers, it really comes down to their personal situation and knowing what's right for them. Real estate truly is local."

The Bank of Canada has maintained the overnight interest rate at one per cent - unchanged since September 2010.

Here's the statement from the bank (published Dec. 3) :