Lower prices than single-family homes
Resale activity for multi-family homes soared in May compared to a year earlier, says the Calgary Real Estate Board.
Last month, 778 resale condo apartments and townhomes changed hands, a 15 per cent upswing compared to the 674 sales during same time in 2012.
“Tighter mortgage rules impacted what buyers could afford to purchase in the Calgary market,” says CREB chief economist Ann-Marie Lurie in a news release. “While the majority of buyers are purchasing singlefamily homes, the attractive price point has improved demand for condominiums.”
Multi-family housing sales were led by townhomes, with 365 sales last month compared to 228 in May 2012, for a 60 per cent rise.
The benchmark price for resale townhome was $292,100 in May, up 5.45 per cent from $277,000 during the same month last year.
The benchmark price is that of a typical townhome based on a formula that uses various factors to ensure accurate comparisons.
Meanwhile, new listings of resale townhomes eased to 426 units from Jan. 1 to the end of May, down 6.17 per cent from 454 units during the same period in 2012.
Condo apartment sales rose to 413 transactions last month, up seven per cent from 386 swaps during the same span last year.
The benchmark price for resale condo apartments was $263,600 in May, up 7.4 per cent from $245,500 from the same month in 2012.
The number of resale condo apartments added to the market this year was 632 units, down 1.7 per cent from 643.
“Improvements in Calgary’s resale housing sector are being fuelled by the combination of employment gains, migration growth and tight rental market conditions,” says Lurie. “However, resale price growth will likely moderate, as competition in the new-home sector and sluggish economic growth expectations will weigh on the housing market.”
Multi-family housing sales grew 60 per cent compared to 2012. ANN-MARIE LURIE, CREB
Ann-Marie Lurie, chief economist of the Calgary Real Estate Board.