How economic indicators actually drive the housing market

What do unemployment, migration and oil prices have in common? Apart from being touchy subjects at a party, they all influence the Calgary housing market to some extent. Understanding how and why that happens could provide an advantage when planning a home sale or purchase.

"In many cases the impact is indirect," said Ann-Marie Lurie, chief economist for CREB®.

One part of that impact relates to demand.

Market sees modest inventory gains, but overall prices inch up 

Sales exhibited stable growth through the first half of the year in the Calgary housing market, but the number of transactions slowed slightly in July compared to last year.

Citywide sales totaled 1,637 units, six per cent below July 2016 levels. Year-to-date sales activity totaled 11,957 units, nine per cent above last year.

"Sales growth exceeded expectations so far this year. Clients were re-entering the market after delaying decisions until there were some signs of economic improvement," said CREB® president David P. Brown.

Stable prices in detached sector signal balanced conditions despite increased inventory

The Calgary housing market saw a modest improvement in sales, along with an increase in new listings, in June.

However, demand gains have not kept pace with the amount of new listings coming onto the market. This caused inventory levels to increase to 6,659 units, which is 11 per cent higher than last year's levels.

Despite the shift in inventory this month, second-quarter activity continues to demonstrate improved supply-demand balance and price stability. City-wide benchmark prices totaled $441,500 in June. This is a 0.5-per-cent increase over last month and nearly one per cent higher than last year.

First-time Home Buyers' Plan offers a path to ownership

A house can be a great investment, but saving enough for a down payment can be difficult. The Home Buyers' Plan (HBP), offered by the Government of Canada, is a program that aids the purchase of a first home by allowing part of a registered retirement savings plan (RRSP) to be withdrawn as a tax-free down payment in cash.

"This is about the only program that is available now through the federal government," said David P. Brown, president of CREB®.

Is there a glimmer of hope in Calgary's struggling downtown office market?

A new report by Avison Young suggests the market may be turning the corner following a brutal two years of ploughing through a recession.

The vacancy rate in the core was 23.9 per cent in the first quarter of the year, up from 17.6 per cent a year ago, but basically unchanged from year-end 2016.

"The first-quarter 2017 vacancy level actually represented positive news as the market took its first steps in halting its overall downward trend," said the commercial real estate company.

Todd Throndson, principal and managing director of Avison Young's Calgary office, says the downtown office market appears to have hit a pause in its rising vacancy.

Energy panel weighs in on the nuts and bolts of the controversial carbon tax

Alberta's carbon tax is one of the most important policy changes in the province's recent history. How Alberta adapts to the tax will undoubtedly shape its economic landscape for years to come.

In effect since January, the $20-a-tonne tax remains a highly contentious topic from both economic and environmental perspectives. Since its implementation, politicians, businesses, and consumers have worried what the additional tax will do to an already fragile Alberta economy and to Albertans.

Some groups, like the Canadian Taxpayers Federation, for example, claim the average household could pay more than $2,500 per year as a result of direct costs, such as household energy use, and indirect costs from increased costs to business operations.

Calgary's housing market showing signs of stability, but the road to a full recovery will take time.

If Calgary's housing market was a hospital patient, it would have been in intensive care for the last year. Today, though, the patient is showing signs of serious recovery.

First quarter data for 2017 from the CREB®, released earlier this month, reveals the market could be entering a period of stability in which supply and demand are essentially balancing out in the detached sector of the market.

"When we talk about recovery, we have to differentiate the marketplace conditions because there are two segments facing different prospects," said Ann-Marie Lurie, chief economist with CREB®.

Detached sales activity boosts February housing market

After the first two months of the year, Calgary's detached sector continues to drive a slow transition in the housing market.

February sales totaled 1,342 units, which is still 19 per cent below long-term averages, but an improvement over the past two years.

As sales kept trending upward, detached inventory levels continued to ease in February. These conditions caused months of supply to fall to 2.4 months, putting less downward pressure on pricing.