Affordability drives townhome demand
Townhomes have been hot in Calgary this year, with demand rising in both resales and newly constructed homes.
From Jan. 1 to the end of November, construction was underway on 1,801 townhomes in the Calgary area, says Canada Mortgage and Housing Corp.
That’s an increase of 13 per cent from the same time in 2012, when 1,589 broke ground.
On the resale side, the number of townhomes sold between Jan. 1 and Dec. 16 was 21 per cent higher, rising to 3,907 transactions compared to 2,542 during the same period last year, says the Calgary Real Estate Board.
“If it’s well-made and in a good location, we’re filling a need,” says sales and marketing manager Brad Logel of Cardel Lifestyles.
The company offers townhomes at its Cranston Place development in the southeast community of Cranston.
Builders point to affordability as a driver for the increase in interest for townhomes.
The average resale price for townhomes sold between Jan. 1 and Dec. 16 is $341,160, up eight per cent from $316,993 a year ago.
The average resale price of singlefamily homes is also about eight per cent higher than the same time in 2012, rising to $517,622 between Jan. 1 and Dec. 16 compared to $481,246 during the same time in 2012.
“The demand for townhomes has been driven by the increase of prices in single-family homes, as well as the lack of available inventory of completed single-family homes,” says Ashley Carcasole, sales and marketing manager with Streetside Development Corp.
Active resale listings of single-family homes declined 18 per cent from Jan. 1 to Dec. 16, easing to 1,904 on the market compared to 2,324 a year earlier.
“Our townhome sales this year outpaced all expectations, with sales completions of projects six months earlier than anticipated,” says Carcasole. Streetside builds townhomes at Kintalla in Redstone and Evanston Square in Evanston.
“Townhomes suit both the affordability issue and they also suit the lifestyle,” says Logel, adding they provide a prime choice for downsizers. “There’s a number of downsizers who are not necessarily ready to go to a condo (apartment). Some are, but not everybody. And for those who are downsizing, the townhome gives them a basement, main floor and upstairs.”
Kelly Halliday, sales manager with Brookfield Residential’s multi-family division, says they have also seen strong townhome sales in 2013.
“We have noticed a significant increase in the number of buyers looking to downsize from a single family detached home into a lifestyle that lends the opportunity to lock and leave — our townhome communities allow for homeowners to do just this.”
Brookfield offers townhomes in Auburn Bay, Cranston, McKenzie Towne and Bridgeland.
In December, residential sales activity of all kinds typically cools down. But townhome sales continue to be strong late in the year, says Logel.
“We list them and within 24 to 36 hours, there’s one or more interested purchasers,” says Logel.
The number of townhome resales is up 21 per cent in 2013 over 2012.