Calgary Inner City Blog

Calgary Real Estate Update for August 2014

Condominium sales set a new record for August activity

Sales activity improves for condominium product, while declining in the single-family sector

  • Strong gains in Calgary’s condominium apartment and townhouse sectors sparked a 3.4 percent year-over-year growth in residential resale housing sales  activity for August.
  • A total of 2,267 units exchanged hands in the city during the month, compared to 2,192 during the same period in 2013.
  • The condominium apartment and townhouse sectors saw the biggest gains, increasing by nearly 14 and 20 percent, respectively, for total monthly sales of 790 units.
  • “The record pace of August sales in the condominium sector is related to the relative affordability of this product combined with a tight rental market and low lending rates,” said CREB® chief economist Ann-Marie Lurie, noting most of the activity continues to take place in lower price ranges. “More than 76 percent of condominium new listings are priced below $400,000 and represent more than 68 percent of the total inventory within city limits.”
  • So far this year, condominium apartment and townhouse sales have totaled a respective 3,388 and 2,685 units. This represents a combined increase of nearly 20 percent.
  • “Over the past three months apartment-style new listings have increased by more than 40 percent year over year, pushing up overall inventory levels and moving this market toward balanced  territory despite the strong sales growth,” said Lurie.
  • Meanwhile, year-over-year single-family sales declined by 2.4 percent in August to 1,477 units, partly due to limited availability in lower price ranges. Despite the pullback, activity in the sector remains stronger than long-term averages.
  • “The decline in single-family sales is mostly due to the shrinking supply in the under-$400,000 sector,” said CREB® president Bill Kirk. “Overall, sales activity has improved compared to last year for product priced over $400,000.”
  • The good news for buyers is added choice. New listings in August improved by 13.6 percent compared to last year, causing
  • inventories to rise by nearly 18 percent. Increased inventory levels also moved the single-family market toward more balanced conditions, helping minimize further monthly price gains. The single-family unadjusted benchmark price totaled $512,300 in August, similar to July, but still 10.24 percent above $464,700 posted a year ago.
  • “Following a prolonged period of Calgary being a sellers’ market, a move toward more balanced conditions is welcome news,” said Kirk. “This will help support a more stable city housing market in terms of price gains.”
  • The average, median and benchmark prices for condominium apartments in August were a respective $332,006, $287,500 and $298,200.
  • Condominium townhouses remain the tightest of the three sectors in Calgary, resulting in further monthly price gains and reaching an August benchmark price of $328,300. While prices are shy of previous highs, they increased by 0.4 percent over the previous month and nearly 10 percent above levels recorded in August 2013.

Source: Calgary Real Estate Board (CREB®)

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Sep 4, 2014

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