Former CREB® president Bob Jablonski recalls 2012 as the year it started to turn around

Bob Jablonski doesn't have to look back too far to remember the last time Calgary's economy was booming.

During his year as CREB® president in 2012, the city was running at a full sprint due to good fortunes in the oil patch. Completion of the new West LRT, The Bow and Peace Bridge were just three of the many major initiatives that came to fruition in Calgary that year, noted Jablonski, who remembered, "the city was getting big and busy."

For many, particularly those in the real estate sector, the good news was overdue. Calgary's housing market had slumped since the 2008 financial crisis, not recovering at the same pace as other Canadian cities.

CREB® points to mortgage rule changes as motivator

For the first time in two years, resale residential housing sales activity in October resembled normal levels, according to a new report.

City-wide sales totaled 1,644 units, which is an increase of nearly 16 per cent over last year, reported CREB® in its monthly housing summary.

"The shift in sales activity this month is likely related to the new mortgage rule changes, inventory gains in the lower price ranges and further price adjustments," said CREB® chief economist Ann-Marie Lurie.

CMHC assessment unchanged from April

Calgary's housing market continues to exhibit signs of over-valuation as economic and demographic fundamentals have altered demand, says a new report.

In its housing market assessment released this week, Canada Mortgage and Housing Corp. (CMHC) noted moderate signs of over-valuation tag due to labour market conditions that have been weak and the seasonally adjusted unemployment rate averaged 8.3 per cent, up considerably from the preceding 10-year monthly average of five per cent.

It's the second time this year that CMHC has noted problematic conditions in Calgary's housing market, the last time being in April.

Former CREB® president Bonnie Wegerich remembered challenges, successes in 2009

Bonnie Wegerich can sum up her time as CREB®'s president in 2009 with one word: recovery.

After residential resale housing prices in Calgary reached record highs in 2007, an economic downturn the following year caused prices to drop and sales to halt – a spillover effect that went well into Wegerich's year at the helm.

"In January, we had more sales than in December, and we were very excited about that. That's where we went from. Every month was getting better than it was," remembered Wegerich, a longtime real estate professional who worked and lived in Airdrie.

Smallest year-over-year decline since 2014

Residential resale housing activity declines in the province eased last month, falling by 3.8 per cent to 4,611 units, according to the Alberta Real Estate Association.

The provincial organization noted September represented the smallest year-over-year decline since December 2014.

Meanwhile, the average MLS® residential price in Alberta rose 3.9 per cent from September 2015 to $396,646.

Apartment sector prompts optimism for buyers

After living in southwest communities of Midnapore and Evergreen for 27 years, transitioning to an apartment in Mission was an easy decision for Michelle Norman.

"Condo living was a very easy adjustment," she said. "I like the idea of being surrounded by a good mix of young and older residents as well as not having to worry about such things as yard work and snow removal."

Southeast district facing increased competition from new home industry

Calgary's resale residential housing market continues to reveal its many layers, with experts singling out the southeast district as an area of the city struggling in the face of intense competition from the homebuilding industry.

This comes on the heels of CREB®'s recently released housing summary for September that indicated prices in other instances are exhibiting increased stability.

CREB® chief economist Ann-Marie Lurie noted home prices in the southeast have struggled more acutely than other districts in Calgary despite indicators that would initially suggest otherwise.

New listing levels starting to match sales

A new report indicates the segment of Calgary's resale residential housing market with the greatest influence on the overall market is showing signs of pricing stability.

The detached benchmark price totaled $503,400 in September, which is 3.3 per cent below last year, but the second consecutive month at this price level, reported CREB® today.

While overall economic conditions remain soft, for now the detached sector is demonstrating some steadiness in terms of pricing, the member-based organization said.

Opulent housing segment continues to show staying power in 2016

The highest end of the home market is a unique beast. It's a sector in which a small percentage drop in price can equate to hundreds of thousands of dollars in savings – and where a minimal increase in sales volume can look like a huge boom.

Year to date the number of $1-million-and-up homes sold in Calgary and area has increased 30-plus per cent over 2015. But in real numbers, the growth was just 99 sales, from 329 up to the end of August last year to 428 for the same period this year. (To put those numbers into context, overall about 14,000 homes changed hands in that period.)

CREA expects sales to struggle to maintain traction in 20016-17

MLS® sales in Alberta are expected to increase for the balance of the year due to better-than-expected activity during the second quarter and health levels heading into the third quarter, according to the Canadian Real Estate Association (CREA) in its revised 2016 forecast.

The national REALTOR® agency added, however, that the current economic climate suggests Alberta sales may struggle to maintain traction over the remainder of 2016 and into 2017.

Alberta sales activity is expected to finish the year down 8.8 per cent to 51,500 transactions - the largest decline in the country as the province's economy struggles with a sluggish energy industry.

Nationally, sales activity is forecast to rise by six per cent to 535,900 units in 2016, which is little changed from CREA's previously predicted sales increase of 6.1 per cent to 536,400 units this year. This represents a new record for annual sales.