SINGLE FAMILY HOMES PRICES ABOVE $400,000
Single-family homes for under $400,000 drying up in Calgary
Garry Marr | September 2, 2014 | Last Updated: Sep 2 3:20 PM ET
Move over Toronto and Vancouver, Calgary’s condominium sector is red hot.
The oilpatch set a new record for condominium resale activity for the month of August with a 14% increase in sales from a year ago. Townhouse sales were even stronger with a 20% jump from a year ago.
Meanwhile, single-family home sales declined during the period as listings for lower-priced property shrank during the period.
“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 Ann-Marie Lurie, chief economist with the board, in a release. “More than 76% of condominium new listings are priced below $400,000 and represent more than 68% of the total inventory within city limits.”
The board said “apartment-style” new listings are up 40% year over year over the past three months, pushing up the inventory levels in Calgary and keeping the market balanced despite the strong sales.
Single-family sales declined by 2.4% in August to 1,477 units. “The decline in single-family sales is mostly due to the shrinking supply in the under-$400,000 sector,” said Bill Kirk, president of the board, in the release. “Overall, sales activity has improved compared to last year for product priced over $400,000.”
The average single-family home in the city of Calgary sold for $542,238 in August, a 5.4% increase from a year ago. On the condo side, the average sale price was $332,006 last month, an 11.5% increase from a year ago.
“The composition of apartment sales shifted toward the higher-end segment this month compared to last month, resulting in higher monthly gains,” said Ms. Lurie.
Housing figures for Toronto and Vancouver are due out later this week.