Condo pace beats houses
Multi-family resale up 14.2 per cent
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.
Ann-Marie Lurie of CREB.