Lower prices than sin­gle-fam­ily homes

Calgary Herald - Calgary Herald New Condos - - New Condos - JOSH SKAPIN

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.”

Pho­tos, Calgary Her­ald/files

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.

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