Santa Claus has visited three times since Calgary home builders have seen a year-over-year increase in single-family starts, but Christmas came early this year.

July’s single-family starts were the first year-over-year increase since November 2006, the year builders started a record 10,482 single-family homes.

The record is not in jeopardy, but after almost three years of slow, but steady declines, July’s performance should prove a sign that the light at the end of the tunnel isn’t another train coming.

And it has builders feeling more upbeat than seven months ago.

“We have certainly exceeded our expectations so far this year,” says Bill Bobyk, general manager of the Sterling Group of Companies.

“It’s a combination of prices, which are considerably more attractive, and interest rates at historic lows.”

The combination has drawn buyers back into a market they couldn’t afford three years ago.

“People saw the market get away from them on the price side of things,” says Bobyk.

“But now, our starter product is moving the best homes priced under $400,000 and especially under $375,000.”

Builders usually see an uptick in sales from April through June, then see them back off a bit until the fall. Not the case this year, says Bobyk.

“One thing that has bucked the trend is the activity this summer,” he says. “We typically go into a lull come July, but we haven’t seen that happen. The momentum fromspring has continued.”

First-time buyers aren’t the only ones taking advantage of lower interest rates and a more relaxed buying atmosphere, says Jason Mauro, newly installed as vice-president of sales and marketing at Albi Homes.

“We had lots of first-timers a fewyears ago, but not so much now,” says Mauro. “We’re more into the estate home market and most of our buyers are already home owners.

“We’re finding people have more confidence, and with five months of stability, it’s a sustained confidence.”

Dave Gladney, president and CEO of Morrison Homes, says 40% of the company’s sales are to move-up buyers and 20% to estate home buyers.

“The move-up and estate buyers are finding there is more time for customization now, something we couldn’t allowwhen we were so busy,” says Gladney. “We had the tools to do it, it was the foundation of the company, but nowwe’re back to the waywe were.”

The real Christmas is four months away and builders aren’t counting the presents under the tree.

“There are good fundamentals driving the market, but it’s still a fragile market and I don’t think it has the capacity to take any bumps in the road, like a major price increase,” says Bobyk.

“There’s an air of caution out there, we’re all aware of what we went through the last two years.”

Whatever may be on builders’ Christmas wish lists, another train in the tunnel isn’t one of them.

The newhomes starts data for July is on page 9.

Thomas is the Homes editor and can be reached at 403-250-4324 or myke.thomas@sunmedia.ca