Condominium Sector Boosts Calgary Housing Market
Calgary’s condo sectors continue to set the pace for the city’s residential resale housing market which recorded 2,148 sales in September, nearly 12 per cent higher than the same period last year.
“September’s sales growth was stronger than expected, due largely to a surge in condominium apartment and townhouse sales,” said CREB® chief economist Ann-Marie Lurie, who credits Calgary’s strong economy and fewer options in the lower-priced single-family market behind the continued demand.
For the fifth consecutive month, year-over-year condominium apartment sales growth outpaced growth in the single-family sector. Year-to-date condominium apartment sales totaled 3,819, a 21 per cent increase over last year. This compares with a seven per cent increase to 13,842 units in the single-family market over the same time frame.
Added supply in the condominium apartment sector, meanwhile, is providing more choices. New listings increased by 48 per cent in September over last year and nearly five per cent over last month, further improving inventory levels and pushing this market into balanced territory.
In the condominium townhouse market, sales and listings continued its year-to-date trend, rising 20 and 21 per cent, respectively, compared to the same period a year ago. Over the first three quarters, 3,002 units have exchanged hands, relative to the 4,011 new listings.
Despite an increase in new listings, the condominium townhouse market continues to be relatively tight, with absorption rates remaining below two months. “While overall supply levels have improved, the condominium townhouse sector continues to reflect the tightest market conditions in Calgary,” said CREB® president Bill Kirk.
New listings in the single-family market similarly increased in September, helping to improve inventory levels above two months. A total of 2,148 units entered the market during the month, a jump of nearly nine per cent compared to the same period last year.
“While conditions are now more balanced, the composition of the single-family market has changed,” said Lurie. “One-quarter of year-to-date sales in the sector has been for product priced below $400,000. Last year, it represented 35 per cent of the market share. Two years ago, it accounted for 44 per cent of all single-family sales.”
The single-family benchmark price topped $512,800 in September, similar to August, but a 10.6 per cent increase year-over-year. Condominium apartment and townhouse benchmark prices grew to respective $298,900 and $330,200, reflecting gains of more than 9.5 per cent relative to last year.
“Calgary’s housing market throughout the spring favored the seller, resulting in higher-than-expected price gains,” said Kirk. “Now a more balanced market is relaxing some of that upward pressure on home prices, and prices are leveling off relative to the previous month. Year-over-year, however, gains are still in the double-digit range.”
“Recent price gains have encouraged listings growth and, ultimately, supply in all sectors,” said Lurie. “However, citywide inventory levels continue to remain below historical norms, and current demand levels continue to point toward healthy absorption rates,” she said.
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