Those selling duplexes in better position than they were last year
Multi-family resale market in Calgary led by activity in city’s downtown region
While resale prices of apartments continued to ease in Calgary last month, townhomes and duplexes both put sellers in a better position than they were a year earlier.
People listing duplexes enjoyed the strongest price growth of any multi-family segment, earning about $12,400 more than similar units went for during the same month in 2016, says the Calgary Real Estate Board.
The benchmark price on duplexes in Calgary last month was $419,000, an increase of three per cent from $406,600 in October 2016. Benchmark prices are that of a typical home based on a formula that uses various factors to ensure accurate comparisons.
Year to date, the benchmark price for duplexes has outpaced the same time in 2016, every month since February 2017.
Meanwhile, people selling townhomes last month earned figures that more closely resembled 2016.
The benchmark price was $305,000, up 0.5 per cent from $ 303,500 year over year. For townhomes, the benchmark has topped the same time in 2016 each month since this past July, says CREB.
“Prices in both the semi-detached (duplexes) and row (townhomes) have stabilized over the last year, likely contributing to some of the listing growth,” says CREB’s chief economist AnnMarie Lurie.
“While inventory and new listings has been higher in the semi- detached sector, the months of supply have generally trended down over last year,” she adds. “The months of supply has average 3.21 months this year, that is down 7.4 per cent over last year at 3.50 months. Sales to new listings ratios also improved, helping support some of the price growth.”
At the same time, apartment prices continued to fall short of the same month in 2016. With a benchmark of $261,600 in October, the segment cooled by 3.25 per cent from $270,400 year over year.
Between Jan. 1 and the end of October, every month has recorded a lower benchmark price on apartments than the same period a year earlier.
WHERE PRICES WERE HIGHEST
Every multi-family home style posted its highest benchmark price in an area CREB defines as the city centre, largely comprised of neighbourhoods near Calgary’s core.
Here, apartments were $287,400, townhomes were $478,700, and duplexes were $764,500.
For year-over-year growth, duplex sellers enjoyed a price boost on multiple ends of Calgary. The city centre was again the leader, rising six per cent from October 2016. This was followed by increases of 5.85 per cent in west Calgary, five per cent in northwest Calgary, 2.5 per cent in southeast Calgary and 0.06 per cent on the south end of the city.
Townhome price growth was paced by the city centre with 5.5 per cent, trailed by two per cent in north Calgary and around one per cent each in east Calgary and west Calgary.
Meanwhile, none of the Calgary areas outlined by CREB registered higher apartment prices last month than in October 2016.
WHERE THEY’RE SELLING
All three multi-family segments saw resale activity slow in Calgary last month. The most similar activity to October 2016 came from apartments, slipping to 233 transactions from 250 a year ago.
Meanwhile, townhome sales declined to 183 from 200, and duplexes dipped to 143 from 166, says CREB.
For apartments, a sizable portion of last month’s activity came from the city centre, where 117 of these units changed hands. The next most active area was south Calgary with 33.
While the city centre also led duplex and townhome sales with 40 and 32, respectively, both segments were more evenly dispersed. There were 29 townhome sales in south Calgary, followed by 27 apiece in north and northwest Calgary.
Trailing the city centre, the busiest areas for duplexes were northwest and south Calgary with 21 deals each, along with 20 on the northeast end of the city.
WHERE TO FIND SELECTION
Townhomes and duplexes recorded jumps in both inventory and new listings compared to the same month in 2016. Inventory of apartments also increased, however, it was the second straight month the segment eased in new listings year over year, says CREB.
The most substantial upswing in inventory came from duplexes, with 28 per cent more on the books than in October 2016. This home style had 249 new listings, growing 11 per cent from a year ago.
Most of the new listing growth through the multi-family end of the market came from townhomes. Last month, 374 townhomes were put for resale in Calgary, soaring 23 per cent year over year. Its inventory picked up 15 per cent from the same month last year.
The 501 new apartment listings last month was down 1.38 per cent year over year, but its inventory of 1,639 represented a six per cent rise. This was again driven by activity in the city centre, where 838 apartments were listed for resale. The only other areas in triple-digit supply were south Calgary with 186, 155 in west Calgary and 129 on the northwest end.
Townhome supply was led by 194 postings in the city centre, followed by 142 in south Calgary, 126 in west Calgary and 125 in the northeast.
For duplexes, the city centre again led the way, with an inventory of 233. This was the only area that reached triple-digit supply. Northeast Calgary and south Calgary were next with 74 and 73 duplex listings, respectively.