The housing market is set for a favourable spring as detached prices stabilize and city-wide inventory trends downward

Ask economists about the highs and lows of the housing market and they'll say it won't last –there's a natural equilibrium that will eventually push things back into balanced territory.

It's a theory that was certainly tested over recent years, but as time will attest, its best to trust economists in these matters.

As spring gets underway amid a strengthening regional economy, the housing market pendulum is slowly swinging back toward the middle.

With new home starts down, inventories are stabilizing

New home construction in the Calgary region continues to be negatively affected by a struggling economy that has slowed down the pace of activity in the past two years – and more of the same is expected this year.

Canada Mortgage and Housing Corp's Richard Cho, principal market analyst for Calgary, says the pace of activity was starting to stabilize in the single-detached market as 2016 progressed.

''But on the multi-family side we saw inventory levels steadily rising throughout the year and they're pretty elevated levels for Calgary and they've had an impact on the number of new projects breaking ground last year,'' said Cho.