I’m sure you have heard all the negativity about housing prices in Calgary as of late. We even had someone call us recently and said that everyone was losing their jobs, walking away from their mortgages and their homes. While many people have lost their jobs, we have not heard of any mass foreclosures at all. All this negativity is from the media repeating the same stories over and over then buyers started backing away from buying a home until they are more certain as to what is happening with oil and the housing market.

So here is what is going on in Calgary and Alberta. Oil prices dropped by half because of a supply glut which is resulting in energy companies holding back on capital expenditures. This in turn resulted in layoffs, with these layoffs the media have been saying will result in lower house prices as people can’t afford to buy homes or maintain their mortgages. It has also been reinforced by people and groups that think Calgary houses prices are unaffordable which is patently untrue. The average household income in Calgary is in the mid $90,000 range which could easily afford a $500,000+ mortgage assuming they had no other debt according to CMHC guidelines.

Right now listing inventory is way up compared to last year at this time (which was a record) and sales are way down. Much of this is from the media hype. But here is the reality of our situation... prices have not come down. You may ask, “if the supply is high and demand is low shouldn’t prices be dropping?” The answer is yes except sellers have timing on their side. We are at the beginning of the Spring market which usually brings higher demand and higher prices and that is not the only reason. We still have an impressive in-migration into Calgary and Alberta and oil is expected to rebound somewhat in the last half of the year and in fact it may have already started. On top of that, mortgage rates were just lowered again. 

All these things together in our humble opinion will result in flat house prices for 2015. Don’t expect any huge price drop or appreciation, but sellers will have to price their homes a little more appropriately to counter the high competition. Buyers will have a good choice to pick from and maybe even find a good deal here and there. What will happen after the Spring market is another story, it all depends on what happens with oil, if it recovers (more likely) or drops lower and where the supply and demand of housing sits at that time. Saying this, if there are any serious shocks to the economy things could change quite rapidly.

From the Real Estate Council of Alberta: Career Opportunity!

Do you know someone with experience in Alberta’s condominium industry? Do they want to help increase consumer protection while strengthening the industry? If so, they may be exactly what the Real Estate Council of Alberta is looking for.

The Government of Alberta recently passed amendments to the Condominium Property Act and the Real Estate Act. These amendments require the regulation of condominium managers and delegates the authority to RECA. RECA will govern the activities of individuals who provide condominium management services to condominium corporations.

RECA is looking for a Condominium Manager Project Coordinator to assist in the implementation of the governance model for condominium managers. The Coordinator will oversee the implementation plan for the regulation and licensing of condominium managers. The Coordinator will help condominium managers understand the licensing, education, and practice requirements to qualify for a licence from RECA.

If you know someone who has:

• experience as a condominium manager or condominium corporation board member
• demonstrated ability to analyze problems and respond with pragmatic advice
• knowledge of the condominium and real estate industry
• experience in project management and leadership roles 
• university degree in a field of study related to the licensing and regulation of professions or post-secondary education relevant to the industry sectors RECA governs
• excellent interpersonal, organizational, and communication skills 
• experience in a regulatory or similar environment is an asset 
• experience in the areas of public consultations, working with multiple stakeholders, and government relations is an asset

Please tell them about this exciting opportunity. More information about the role is available here.