Mayor Naheed Nenshi is in his third term in office after winning the municipal election in October. Recently he spoke with CREB®Now about issues facing the city and what he sees moving forward in 2018. Here is an edited version of that conversation.

It is a word used extensively this year, as Calgary's economy and housing industry tiptoed to recovery.

And that word — modest — is one you will continue to hear in 2018 in relation to expected gains by each branch of the residential home market.

Economic growth forecasts paint cautiously optimistic picture for Calgary housing market

Calgary's housing market lives and breathes based on the whims of the city's overall economy.

While the city had an impressive gain of 6.9 per cent in economic growth in 2017 compared to 2016, according to the Conference Board of Canada, the economic engine will slow down this year and in 2019.

CREB®Now sat down with CREB® chief economist Ann-Marie Lurie to reflect on the housing market and Calgary real estate in 2017.

Dissecting the detached category

Sales activity declines in Calgary's detached resale housing segment over the first half of 2015 resembled that posted during the global economic crisis in 2009, according to CREB®'s mid-year forecast update.

Yet experts warn aggregate prices in Calgary's largest housing segment, which have started to fall, are being skewed by higher-priced markets, which experienced a more dramatic drop during the first half of the year.

"This year, we have seen sales decline in all price ranges. However, the decline in the luxury home market has been larger compared to lower-priced homes," said Richard Cho, principal of market analysis for Canada Mortgage and Housing Corp. (CMHC).

Detached sales totaled 6,203 units, a 25 per cent decline relative to the previous year, noted CREB®.

While Albertans were shopping up a storm for the month of November, ATB economist Todd Hirsch said they might not so willingly dole out the cash for shopping in 2013.

"With warnings of lower oil prices and worries of lower provincial government spending in the coming budget, there may be a few anxious moments in store for some Albertans," said Hirsch adding those factors could pull back the reins of retail enthusiasm in the province for the coming months.