Shared-equity housing and other programs are creating solutions to the city's affordable housing crisis

Affordable housing advocates say more moderate population growth this year will not be enough to break down barriers to homeownership that many Calgarians continue to face.

Calgary Homeless Foundation vice-president of strategy Kevin McNichol said the housing market still cannot keep up with demand, with historically high prices prohibiting many people from owning a home of their own.

In late December, more than 3,600 people were on the Calgary Housing Company's wait list for subsidized and affordable housing units — the largest number of Calgarians waiting for a home since March 2012.

The year according to CREB®'s Ann-Marie Lurie

With the calendar set to turn on what's been a turbulent year in the city's real estate industry, many will wondering what to expect in 2016 and beyond. To help provide a little clarity on just how we got here, as well as a hint as to where we're headed, CREB®Now enlisted CREB® chief economist Ann-Marie Lurie to provide some end-of-year insight.

CREB®Now: ?How would you sum up 2015 in Calgary real estate?

Lurie: It has been a year of weaker demand – definitely challenging economic times resulting in weaker demand. As a result there has been some more inventory than we are used to in the market and there has been some downward regression on pricing. It's completely consistent with what the economic situation has been.

A look back at Calgary's resale residential housing market

If nothing else, 2015 was an interesting year for Calgary's housing market.

While it remained resilient even while oil prices began to slide, the conditions that arose as 2014 drew to a close signaled a change was in the air.

And so as Christmas came and went, December 2014 saw the first year-year-year sales decline following 11 consecutive months of year-over-year growth. And with little expectation that things would change, once-lofty expectations gave way to a more realistic outlook.

John Harrop talks about what's in store for 2016

Affordable housing emerged as a pressing topic in Calgary this year, as housing prices, rents and vacancy rates challenged people's access to shelter. In fact, wanting to find a solution to the city's growing housing affordability is what drove John Harrop to his new role as president and CEO of Attainable Homes Calgary Corp.

CREB®Now had a chance to sit down with Harrop to discuss everything from the economy's impact on affordable housing to what goes into creating the perfect community. Here's what he had to say:

Local housing industry experts say a change that governs the amount buyers are required to put down when purchasing a home will significantly impact Calgary's already sluggish market.

Effective Feb. 15, 2016, the change announced by the federal government in early December will raise the minimum down payment for new insured mortgages from five to 10 per cent on the portion of the house price above $500,000.

"The intent of [the change] is to pull back demand, and they're slowing demand in a market where we're already seeing demand slow," said CREB® chief economist Ann-Marie Lurie, noting resale residential sales in Calgary have already dropped nearly 20 per cent from the 10-year average.

Overseas condo ownership ramps up in Calgary

Foreign ownership is picking up in Calgary's housing market, according to a new report from Canada Mortgage and Housing Corp (CMHC).

Late last week, the federal housing agency noted foreign ownership in Calgary's condo apartment sector has increased from just 0.2 per cent of the total market in 2014 to 1.1 per cent in 2015.

While it's a far cry from the level of ownership seen in markets such as Vancouver and Toronto, the rise in Calgary still represents a five-fold increase.

Parking stalls becoming key bargaining chips in a buyers' market for apartment condos

Parking is at a premium in Calgary's inner city.

Granted, that's not new news. But its impact on the local resale residential housing market is now making waves, especially as a bargaining chip for sellers in the beleaguered apartment-style condominium sector.

Benchmark prices in Calgary fell overall by 0.7 per cent in October compared with the month before, and 1.2 per cent from October the previous year, according to CREB®'s most recent monthly housing summary.

The steepest decline, however, was in the apartment condo sector where the benchmark price fell 0.8 per cent to $288,300 and four per cent from October 2014. CREB® attributed the decline to a corresponding increase in months of supply, which approached six months. In other words, more supply created a downward pressure on prices.

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®.

Dealing with real estate's S word

Calgary's real estate industry has come under the microscope recently, with some questioning the degree to which professionals are obliged to reveal perceived flaws in properties up for sale.

While CREB® President Bill Kirk acknowledges there is a "grey area" that exists with stigmatized properties — a point brought to light last week when a Brentwood home that was the scene of Calgary's worst mass killing went up for sale – he emphasized reactions to such homes are as varied as the circumstances surrounding them.