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.

It's a happy New Year for Calgary's real estate market, as the city ended 2012 with sales volume up 15 per cent and benchmark prices up five per cent.

Average sale prices were the highest ever in Calgary at $428,655 for combined single family and condominium, but this figure was skewed by a surge in $1-million plus homes sold in 2012. The benchmark price of $381,408 is lower than the average because tracking is based on comparable properties.

Buying a condominium means you're buying into a form of home ownership that's different from a single-family dwelling.

A condominium generally refers to the privately owned unit you'll call home and the common areas, which can include hallways, the exterior of the building, green space and other areas for which owners share responsibility.

After seeing double digit growth in 2012, CREB®'s housing market forecast for 2013 shows things settling into more balanced territory.

"Overall, we expect sales growth to ease to two per cent next year," said CREB® economist Ann-Marie Lurie at a forecast sneak-a-peek Dec. 11.

Calgary's residential sales are continuing to show positive growth.

Sales increased by 15 per cent on a year-to-date basis in 2012, and were up eight per cent this November compared to last. With nearly eight consecutive months of double-digit, year-over-year sales growth, the city's inventory levels are decreasing, as new listings haven't been able to keep up. However according to CREB®'s monthly stats, the ratio between sales and inventory shows the market remains in balanced territory.

Calgary and Alberta continue to be the exception to the rule when it comes to the Canadian housing market.

"Alberta and the rest of the country are clearly on different train tracks when it comes to the housing market," said ATB senior economist Todd Hirsch. "Back when Alberta's home prices were booming, the explanation was pretty straightforward: very high in-migration combined with strong wage growth and the introduction of 40-year mortgages."

A recent pilot project from City Hall has once again cast a spotlight on the hotly contested issue of secondary suites in Calgary. One of Mayor Naheed Nenshi's major talking points during his 2010 campaign, the citywide legalization of secondary suites, remains an unrealized goal as the Mayor comes to the end of his term.

Although city council agreed in April to allow the suites in all new neighbourhoods, it's unlikely such a move will make much of a dent in Calgary's hot rental market.