Price growth eases as supply improves
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Calgary, Nov. 3, 2014 – Continued
double-digit gains in the condominium apartment sector helped to fuel a
10 per cent increase in Calgary’s residential resale housing market
in October. Overall sales for the month totaled 2,147
units, compared with 1,948 during the same period last year.
“Two consecutive years of relatively strong employment and
population growth, combined with rising wages and low lending rates, have
supported demand growth in our housing sector,” said CREB® chief
economist Ann-Marie Lurie.
With a 14 per cent gain, the city’s condominium apartment
sector recorded the largest year-over-year growth. It represents the
sixth consecutive month that sales in this category have increased by
double digits – due, in large part, to better selection of relatively
affordable product. More than half of this year’s new listings have
been priced below $300,000.
“Tight rental market conditions combined with low
mortgage rates have supported demand growth for condominium
product in Calgary,” said CREB® president Bill Kirk, noting
apartment sales have also set a year-to-date record, totaling 4,202
units. “Much of this demand is coming from both first-time
homebuyers and investors.”
While sales improved, year-to-date condominium
apartment listings also increased by nearly 30 per cent to 6,528
units. The pace of growth has exceeded sales growth causing a rise
in inventory levels.
“Rising listings relative to sales activity has caused apartment
inventories to improve,” said Kirk. “This has pushed this
sector into more balanced territory, reducing some upward
pricing pressures and giving buyers more options.”
Meanwhile, year-over-year condominium townhouse sales growth eased to
eight per cent in October compared to the same period last year.
Year-to-date sales, however, are still up 19 per cent to 3,303
units. New listings have similarly kept pace, creating access to more
inventory for buyers.
Much like the condominium sectors, October sales in the singlefamily
market experienced healthy gains, growing by 9.7 per cent to 1,462 units
compared to same period last year. Meanwhile, new listings totaled 1,871
units. Year-to-date single-family sales and new listings have totaled
15,301 and 21,890 units respectively.
As of October, only 18 per cent of new single-family listings were priced
below $400,000 and only 387 remained in inventory by the end of the
“While buyers can still find single-family product priced
under this threshold in Calgary, the selection has consistently
declined over the past four years,” said Kirk. “As our market moves
into more balanced conditions, there has been a notable shift in the
composition of the market. Not only do condominiums represent a larger
share of total activity, but product availability by price range and
property type has shifted.”
Single-family, apartment and townhouse benchmark prices totaled a
respective $513,500, $299,800, and $337,800 in October. While all sectors
saw unadjusted monthly prices level off and growth ease,
year-over-year increases remained above nine per cent across all
categories due to gains achieved this past spring.
“All citywide resale segments have recorded a moderate easing of supply
constraints, which should help stabilize prices as we approach the
end of the calendar year,” said Lurie. “Nonetheless, consumers should be
aware that market conditions can vary significantly depending on the
location and property type.”