Condo herb garden project sparks sense of community

If you want to know what's going on in your neighborhood, just lean over the fence and ask what's growing in the garden.

That's a British saying that's as true in a Kent country cottage as it is in a downtown Calgary condo.

But how do you find the space?

For Marion Tompkins, retired and living in an Eau Claire apartment tower, it meant re-imagining some under-utilized space right under her nose into a communal herb garden.

New museum provides perspective of just how far growing town has come

Gordon Davies's roots run deep in Cochrane.

His family moved to the area in the early part of the 20th century, while Davies himself is president of the Cochrane Historical & Archival Preservation Society (CHAPS).

The society, in fact, is behind the new Cochrane Historical Museum, which opened May 31 and was nearly two decades in the making, according to Davies.

"Unlike many towns, Cochrane has never had a museum dedicated to its local history," he said, noting CHAPS has been planning the museum since the society's inception in 1999.

CREB®Now sits down with Canadian Real Estate Association president

Pauline Aunger is no stranger to Canada's real estate market. As president of the Canadian Real Estate Association (CREA), she has a unique behind-the-curtains perspective of the industry – from its performance to advocacy efforts.

CREB®Now recently sat down with Aunger, who was in Calgary recently as part of CREA's cross-country open house series with local real estate boards. Here's what she had to say about everything from insurance premiums to how Calgary factors into her bucket list.

Airdrie continues to step out from the shadow of its neighbours

Airdrie has come a long way from its roots along the tracks of the Calgary Edmonton Railway.

Located almost literally in the shadow of Calgary, Airdrie's rise from sleepy railway stop to full-fledged city is reflected in the number of people who choose to call the community home.

Rising from just over 12,000 residents in 1991 to 58,690 in the recently released 2015 census, Airdrie is now Alberta's seventh largest city, ranking ahead of such centres as Leduc and Grande Prairie.

Airdrie's population grew by 3,799 or 10.4 new residents per day, versus 5,331 total or 15 new residents per day last year – a growth rate of 6.92 per cent growth rate, compared to 10.76 per cent last year.

As Canada Mortgage and Housing Corp.'s market analyst for Calgary, Richard Cho is tasked with keeping tabs on the housing market in one of Canada's most dynamic cities.

CREB®Now caught up with Cho to talk about the economy, what's in store for Calgary's real estate sector and why he enjoys calling the city home.

CREB®Now: ?How are current energy prices affecting the city of Calgary?

CHO: A large part of Calgary's economy is tied to the performance of the energy industry. The decline in oil prices has posed some challenges for many oil companies, resulting in reductions to capital expenditures, hiring freezes, and layoffs. This has also impacted many other industries, from large companies to small business owners, that either directly or indirectly benefit from the energy sector. While there are still areas of Calgary's economy that are holding steady and creating jobs, overall economic activity is expected to slow down this year.

In a city renowned for its freeways and sprawling suburbs, more residents are choosing to live closer to its centre — and even forgoing hopping behind the wheel altogether

Who needs to own a car? Not Jennifer Lee.

The 21-year-old moved to Calgary two years ago to study and work in the city's burgeoning IT sector. And like a growing number of millennials, she doesn't own a car and has no plans to own one soon.

While that may not sound altogether revolutionary, Lee represents a wave of change in a city renowned for its multi-lane freeways, suburban sprawl and increasingly congested roadways.

Several reports have sounded the alarm our real estate market is grossly overvalued, but industry watchers contend Calgary isn't poised for the big crash some are forecasting

Reports suggesting Calgary's housing market is over-valued, supported by recent price corrections, are missing many of the obvious indicators saying otherwise, say experts.

The metrics used to measure affordability simply do not back up the argument that Calgary's real estate market is highly overvalued and ready for a precipitous drop in home values, said Robert Kavcic, a senior economist with Economic Research BMO Capital Markets in Toronto.

"One of the (metrics) we look at is the average mortgage payment as a share of income, and right now that's a little bit above the long-run norm of 27 per cent at about 29 per cent," he said.

Outside factors will impact housing market through 2016

With the sun in Calgary rising and falling relative to the price of a barrel, it should be no surprise that the city's real estate market will continue to be impacted by economic realities beyond its control, say housing analysts.

Following a first half that can best be described as turbulent, the remainder of 2015 looks to bring more of the same for the city's housing market, with CREB®'s mid-year forecast update suggesting decreases across the board, including moderate price contraction.

"Further job losses are expected in the second half of the year," said CREB® chief economist Ann-Marie Lurie.

"These employment changes, combined with overall weakness and slower-than-anticipated recovery of oil prices, are expected to keep housing demand relatively weak for the rest of 2015.

Roller-coaster ride to start 2015 ended with more balanced conditions

The arrival of 2015 was bound to signal a change of pace for Calgary's resale real estate industry, which had just wrapped a bow around a banner 2014.

In fact, with oil prices showing signs of deteriorating toward the end of 2014, December's four per cent sales decline – following 11 consecutive months of sales increases –was really a sign of things to come.

"Changes in the economic climate are expected to cool housing market conditions in 2015, and December activity may be the first indication of this shift," said CREB® chief economist Ann-Marie Lurie at the time.

That change came early and it came swift, with sales falling by more than 30 per cent in January to five-year lows even though new listings maintained their upward momentum by increasing by 37 per cent compared to the same period last year.

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®.