Condo pace beats houses

Multi-fam­ily re­sale up 14.2 per cent

Calgary Herald New Condos - - New Condos - JOSH SKAPIN

Sales growth in multi-fam­ily hous­ing has out­paced sin­gle­fam­ily homes in the first six month of the year com­pared to the same time in 2012, says the Calgary Real Es­tate Board.

From Jan. 1 to the end of June, re­sale ac­tiv­ity of con­dos and town­homes reached 3,706. That’s up 14.2 per cent from the same time last year, when 3,243 changed hands.

Af­ter six months in 2013, sales of sin­gle-fam­ily homes in­creased to 8,573 trans­ac­tions, up 0.7 per cent from 8,511 deals dur­ing the same span in 2012.

The up­swing in multi-fam­ily sales is driven by a “tight” mar­ket in the lower-cost sin­gle-fam­ily homes, says chief econ­o­mist Ann-Marie Lurie of CREB.

“When we look at any­thing un­der $500,000, the avail­abil­ity in that seg­ment of the mar­ket has been shrink­ing,” says Lurie. “For those who are look­ing for more af­ford­able prod­ucts, a lot of them have looked at the con­do­minium mar­ket.”

Through the first six months in 2013, ac­tive list­ings of all sin­gle-fam­ily homes eased to 3,199 units on the mar­ket, down 19 per cent from 3,817 last year.

Lurie says an­other in­flu­ence on condo sales is a tight rental mar­ket in Calgary from Jan. 1 to the end of June.

“Typ­i­cally, those en­ter­ing from the rental mar­ket into own­er­ship are look­ing for af- ford­able prod­uct — and con­do­mini­ums are pro­vid­ing that to them,” says Lurie.

Af­ter six months, re­sale ac­tiv­ity of multi-fam­ily apart­ments in Calgary reached 2,034, up 9.5 per cent from 1,857 a year ear­lier.

From Jan. 1 to the end of June, apart­ments sold for an aver­age of $297,505, up seven per cent from $278,279 a year ear­lier.

From the start of the year to the end of June, 1,672 town­homes changed hands. That’s 21.4 per cent more than the same time in 2012, when there were 1,377 sales.

The aver­age price of town­homes sold af­ter six months in 2013 climbed 6.9 per cent to $340,535, up from $318,501 a year ear­lier.

Lurie says strong condo sales should con­tinue through the sec­ond half of 2013.

“We ex­pect peo­ple will con­tinue to look for that well­priced prod­uct,” says Lurie.

Sales of multi-fam­ily re­sale homes reached 3,706 in April.

Calgary Her­ald/files

Ann-Marie Lurie of CREB.

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