The resale housing market outside of Calgary is booming these days.
The Calgary Real Estate Board reported Tuesday that Airdrie, Cochrane and Okotoks all recorded the highest third-quarter sales activity on record, mostly as a result of gains in the single-family homes sector.
“Affordability and lifestyle preference play a significant role for consumers considering surrounding communities,” said Becky Walters, CREB’s president. “These areas tend to provide single-family homes that offer more features at a lower cost than what can be found in the city.”
The board said weaker activity in High River following the June floods did not outweigh the aggregate gains recorded in the surrounding towns. Sales in surrounding towns totalled 1,288 units, 22 per cent higher than third-quarter sales in 2012.
CREB said tight rental market conditions, combined with declining supply of affordable single-family homes in Calgary, supported growth in surrounding communities. The additional demand occurred as a result of the flood, further boosting growth in the typically more affordable bedroom communities.
“The entire region has benefited from the economic prosperity, as employment gains and stronger than expected net migration has supported housing demand,” said Ann-Marie Lurie, CREB’s chief economist. “In surrounding areas, sales growth has outpaced the level of new listings and this has placed downward pressure on inventories, while supporting price gains. However, price levels remain significantly lower than those in the city and are growing at a slower pace.”
In Airdrie, year-to-date there have been 1,058 MLS sales as of the end of September, up 13.52 per cent from the same period last year. The average price for a single-family home is $386,883, up 3.72 per cent year-over-year.
MLS sales in Okotoks of 537 so far this year represent a 12.58 per cent hike from last year while the single-family average sale price has jumped by 5.40 per cent to $437,519.
And in Cochrane, year-to-date sales of 441 are up 6.52 per cent from 2012 and the single-family average sale price has risen by 5.89 per cent to $448,257.
Year-to-date, the towns outside Calgary market has had 3,540 sales, up 10.25 per cent from last year and the single-family average sale price is up 3.53 per cent to $389,167.
In the city of Calgary, year-to-date MLS sales as of Monday were 19,091, up 9.82 per cent from last year and the single-family average sale price has jumped by 8.19 per cent to $517,860.
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