Single-detached housing starts haven’t been this high in almost a year. Figures from Canada Mortgage and Housing Corp. show that builders in and around Calgary started work on 382 detached residences in May — the most in one month since 431 starts were posted last July. And the upbeat news doesn’t end there. Since bottoming at 171 starts in March, there have been back-to-back monthly increases in April and May.

“New home sales are improving and are being supported by low mortgage rates and competitive pricing,” says Lai Sing Louie, CMHC’s Calgary-based senior market analyst.

That being said, there’s still a long way to go to get back to 2008 numbers.

For the first five months of this year, construction of detached homes is running 37 per cent behind 2008.

At Albi Homes, president and managing partner Allan Klassen says May was the best month the company has had in two years.

“Actually, since March 15 we’ve had 48 sales — and that’s big for us,” he says, adding Albi is holding 21 deposits moving into June. “I think if we have a good June, we can call the market stabilized. There is a certain level of pent-up demand, people are feeling better about themselves and their financial situations.”

Things are even rosier at Shane Homes where the company has recorded 40 sales in each of the last two months.

“I think consumers are finally getting the message that the world isn’t coming to an end,” says Shane Wenzel senior vice-president of sales and marketing. “They’re now seeing just how good a market this is for buying a home now that prices are back in line and mortgage rates are as low as they have ever been.”

Wenzel says the bulk of the sales are showing in the $300,000 to $500,000 range. Above the half-million mark it was slower, but even that price category is showing renewed vigour.

“There’s been an attitude change out there and we’re positive moving forward,” he adds.

Geoff Thomson, Calgary region president of Cardel Homes, says the company is expecting to reach its forecast sales budget because of the renewed consumer interest.

“We’ve been pleasantly surprised with how well we’ve been doing. We’re averaging 40 sales a month and we should exceed 300 homes this year,” he says.
Focusing on the moveup market, the Cardel official also says the company could reach 200 sales by the end of June before the market eases off in the second half.

“With mortgage rates and house prices forecast to move up, we expect the second half of the year to be about 75 per cent of what the first half has been,” says Thomson. “I don’t believe this market has fully turned to the corner.”

Sterling Group general manager Bill Bobyk says the industry is going through a more typical spring market. After a slow start to the year, Sterling recorded 31 sales in March, 44 in April and 34 in May.

“Those are historically the busiest months for builders, but now we expect the market to taper off as summer approaches and people start thinking about vacations or whatever. But it was good to see a spring market again,” says Bobyk. He says that while the fall has the potential to be slower, any mortgage rate increases aren’t likely going to be dramatic enough to sway anyone considering buying a home.

While the detached market appears to be regaining some strength, the multi-family sector is struggling.

Only 98 semi-detached, townhouses and apartments were started last month compared with 1,013 for the same month a year ago. “Calgary experienced elevated levels of highrise condominium starts during the first five months of 2008,” says Louie.

“Consequently, future year-over-year multi-family comparisons will likely narrow in the months ahead.

So far this year, starts in this sector are trailing the 2008 by 93 per cent, CMHC figures show.

With the dramatic decline in multi-family fortunes, housing starts of all kinds totalled 480 last month compared to 1,488 in May of 2008.

And after five months, work has started on 1,547 units, well off the 2008 pace of 7,240 units in 2008.

Across the province, the seven largest centres recorded 962 starts of all types, down 61 per cent from the previous year.


Nationally, housing starts climbed to 128,000 on an annualized basis last month from 117,000 at the end of April, according to CMHC. “With the Canadian economy poised to begin the recovery process by this fall, the worst of the residential construction recession might be behind us,” says BMO Capital Markets economist Robert Kavcic. “Still, though, a sharp rebound is unlikely in this sector thanks to about six years of overbuilding.”