Calgary Condo Talk

[Spring2008]

Starts are up 66% year-over year too for multi-fam.

Condo apartment sales up 28% year over year

Growth due to available inventory and affordability

Condo Sales Sales in the Calgary condo apartment sector jumped 28% this quarter over last quarter. Condo inventory should also get better later this year as new construction projects are completed.

Condo apartments saw the strongest year over year sales gain in the first quarter of 2014 due to available inventory and affordability, says a report from the Calgary Real Estate Board (CREB).

Sales in the apartment sector reached 1,062 after the first quarter, a 28% increase over the first quarter of 2013. New listings after the first quarter totalled 1,722, up 18% year over year and even though demand out-paced listing growth, inventory levels are similar to the previous year, said Ann-Marie Lurie, CREB’s chief economist. “Single-family sales at the end of the first quarter totalled 3,901 units, a 9.5% increase over the same period last year,” said Lurie.

“Meanwhile, the amount of new listings declined by nearly 5%. As sales growth outpaced the amount of new listings growth in the market, inventory levels dropped to just over 2,000 units.”

That equals almost a two-month supply of single-family homes on the MLS system, putting Calgary firmly into a sellers market.

Affordability and selection are driving buyers into apartment condominiums and townhomes, said CREB president Bill Kirk.

“The unadjusted single-family benchmark price totalled $490,600 in March, a 9.9% increase over the previous year and a monthly increase of 1.6%,” said Kirk.

“Condominium apartment and townhouse prices totalled a respective $287,200 and $313,100. The condominium apartment price recorded a year-over-year increase of 11.5%, the highest relative to the townhouse and single-family sector.

Despite strong price gains across all sectors, overall the condominium sector continues to record price levels below peak records.

“Nearly 50% of new listings in the apartment sector are priced in the range of $200,000 to $299,999, providing options for those looking for affordable product. However, there are far fewer options for those looking to spend less than $200,000. After the first quarter, apartment product priced below $200,000 has dropped from over 16% of the market last year to 6.4%.”

The condominium inventory situation should get better this year as new product comes on stream, said Lurie.

“Some easing of the supply pressure in the condominium market is expected as new construction projects are completed,” she said. “However, thanks to Calgary’s strong economy, it is expected that most new supply can be absorbed without risk of over-supply and condominium price correction.”