Calgary real estate industry hopes housing start uptick the beginning of a trend

New home construction in Alberta is still below pre-recession levels but there are indicators activity is starting to rebound, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC).

At the same time, thenumber of completed but unoccupied new homes has reached a record high in Calgary.

Still, there is growing optimism among some in the city's real estate industry.

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"We're starting to see somegreen shoots, I think, in the marketplace," said real estate agent GraemeMcInnis, who has been noticing increased sales activity in some parts of Calgary.

"Detached homes are selling quickly and for very good prices."

After flat-lining for more than a year,housing starts province-wide ticked upward in March, which could represent the beginning of a new trend of "modest growth" in construction levels, according to a report from ATB Financial.

"Along with other indicators such as retail sales and employment, there is mounting evidence this spring that Alberta has turned a corner on the recession and can anticipate better economic results in 2017," the report reads.

In Calgary, specifically, housing starts are up 33 per cent in the first three months of 2017 compared to the same time last year, but they remain below 2014 and 2015 levels.

"We feel like in the new home market, the resale market as well, we are seeing things turn around," saidRichard Cho, a market analyst with Canada Mortgage and Housing Corporation, which tracks the housing-start data.

"The bottom was reached sometime in 2016 . And since then we have seen some improvement."

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And while more are being built, the number of new homes sitting unoccupied has grown to a record level, according to the CMHC data.

That has primarily been driven by a growing glut ofempty apartment-style condos.

This interactive graph shows the number of completed but unabsorbed new units, by dwelling type, over the past five years in Calgary:

Mike Wagner with MorrisonHomes said the rebound has been apparent to his company, which has seen sales nearly doublebetween March of 2016 and 2017.

"I think it's significant," he said.

"When we start seeing activity like we're getting, we have to be optimistic that the trend is the market has turned."

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