5 things about multi-family resale
Prices on townhomes listed through Calgary’s resale market last month was the highest figure in five months and climbed two per cent year over year.
The benchmark price on townhomes in April was $300,000, rising from $293,600 in 2017, says the Calgary Real Estate Board. Benchmark prices are that of a typical home based on a formula that uses various factors to ensure accurate comparisons.
The last time the townhome benchmark was higher, it was $303,100 in November 2017.
At the same time, prices on both apartments and duplexes last month recorded a setback from the same time a year ago. Apartments were down nearly three per cent to $256,700, while the benchmark on duplexes was $420,000, a one-per-cent dip.
Here are five things about resale of multi-family homes in the city last month.
PRICE MOVEMENT
The biggest gains for people selling townhomes in Calgary last month were in areas CREB calls the city centre and north Calgary. The city centre’s benchmark of $468,500, and north Calgary’s $262,800, and they were each up about two per cent year over year.
While all zones, as defined by CREB, posted some form of price decline on apartments last month, north and northwest Calgary’s numbers that were the most similar to April 2017, each down just short of one per cent.
For duplex prices, three areas in the city stood out. South Calgary’s benchmark was up nearly 10 per cent year over year, while neighbourhoods in east Calgary and northeast Calgary rose nine per cent and six per cent, respectively.
PRICE RANGES
While most of last month’s apartment sales came in the $200,000 to $299,999 bracket, with 108 units changing hands, the growth came in the upper end of the market. There were 13 sales of apartments between $450,000 and 499,999, up from four last year, says CREB.
The 10 sales of townhomes between $550,000 and $599,999 last month doubled the tally from April 2017. The segment was led by the $200,000 to $299,999 range with 72 sales that month, which was down from 82 year over year.
For duplexes, the only yearover-year gains were in the $350,000 to $399,999 bracket, with 27 sales compared to 25.
CHANGING HANDS
Resale of apartments, duplexes, and townhomes cooled in April compared to the same month in 2017, says CREB.
There were new owners for 262 apartments last month, down 7.5 per cent year over year. The bulk of these transactions belonged to the city centre with 124. Northwest and west followed with 35 apiece.
Townhome sales stepped back 13 per cent to 192 from 221.
The city centre carried the pace with 42, trailed by south Calgary and north Calgary with 29 each.
The sharpest sales decline was from duplexes, slipping 23.5 per cent to 156 from 204 year over year. The city centre again took the Calgary-wide lead, this time with 51 sales last month. Northwest Calgary and south Calgary were next with 25 and 21, respectively.
DECIDING TO SELL
While all three multi-family segments had more new listings last month than in April 2017, the most substantial upswing came from duplexes. There were 350 duplexes added to the market last month, soaring 30 per cent year over year. This follows 388 new duplex listings this past March.
Apartment sellers added 727 units to the market last month, rallying five per cent from the same time last year.
Meanwhile townhomes saw the most similar new listings numbers year over year, rising two per cent to 484 from 474.
SUPPLY RISING
Apartments, townhomes, and duplexes all recorded increases in inventory from the same month in 2017, says CREB.
Duplex supply soared 66 per cent to 756 available units last month. Rising from 675 listings in April, this marked the fourth consecutive month-over-month increase.
Meanwhile, apartment inventory jumped 12 per cent and townhomes were up 24 per cent.
The city centre led all ends of Calgary in supply for all three segments last month, with 964 apartments, 301 duplexes, and 199 townhomes.