Calgary condo market booming with high sales growth – New condo sales at strongest levels since 2006

The pace of year-over-year sales growth in the resale condo market is much higher than the single-family home market this year in Calgary.

And new condo sales are also moving in an upward trend towards the strongest levels since 2006.

“Calgary’s condominium market remains resilient and in high demand with new construction being well supported demographically, exhibiting steady sales throughout the inner city and the downtown core,” said Kaitlyn Gottlieb, a realtor with Century 21 Bamber Realty Ltd. in Calgary.

“Calgary’s luxury condominium market remains immensely sought after. As Calgarians’ incomes continue to rise and our business sector attracts relocations, high-end buyers are taking advantage of the luxury condos that Calgary has to offer, boasting high-end finishes and their close proximity to the downtown core.”

According to the Calgary Real Estate Board, year-to-date until October 10, MLS sales in the condo apartment category in the city were 3,253, up 14.58 per cent from the same period a year ago and the average sale price has jumped by 6.14 per cent to $298,050. In the condo townhouse category, sales of 2,600 are up 22.18 per cent from last year and the average sale price has risen by 6.60 per cent to $338,809.

The single-family home market in the city has seen sales rise by 7.36 per cent to 13,482 with the average price moving up by 8.18 per cent to $517,730.

“While the recent floods have undoubtedly impacted all sectors of Calgary’s housing market inclusive of the condominium market, as demonstrated by the increased demand for affordable housing, the overall market remains stable,” said Gottlieb.

“Steady migration, employment and population growth are major contributors as we move into the fourth quarter of the year. The relative affordability of our city’s housing market remains one of the best in Canada and we can expect to see Calgary’s condominium market continue to rise at a moderate, sustainable pace.”

A report by Altus Group says new condo sales in Calgary are at the strongest levels since 2006.

It said the new multi-family condo market has seen impressive sales in the first half of 2013 with almost 3,000 sales to start the year, an increase of 400 sales compared with the same period in 2012.

The sales pace this year is 16 per cent ahead of 2012 at mid-year and 74 per cent better than in 2011 for the same period.

“New suburban apartment and townhouse projects entering the market are primarily responsible for the strong sales results, with mid-year sales up sharply in the north and south quadrants of the city following the launch of several new projects during the Spring,” said the report. “In the downtown region, sales are generally consistent with last year’s pace, although sales activity has been more focused at projects with superior locations and faster possession timing.”

The report said the strong sales so far this year are expected to push the annual sales volume to about 5,000 units, potentially making 2013 the second strongest sales year in the past decade.

“Developers will begin to see cost pressures from higher land prices, construction cost escalations and a declining land supply in the suburban regions, while consumer activity could be impacted by the recent price growth, higher interest rates and more restrictive lending practices,” said the report.

“While home ownership will remain the goal for most consumers, the higher prices and interest rates may force some consumers to delay their purchase decision while they save for a larger down payment.”

© Copyright (c) The Calgary Herald

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