Home buyers who are being priced out of the housing market are turning to condos—sparking a huge influx in sales.
In the first two months of 2014, condo and townhouse sales have jumped 28 per cent compared to 2013 numbers.
“Consumers who are in the market for single family homes priced below $300,000 do not have many options, and when product does become available, it typically does not stay on the market for long,” said Calgary Real Estate Board president Bill Kirk. “However, nearly 54 per cent of the new condominium apartment listings this year are priced below $300,000, which is providing options for consumers looking for affordable product.”
Buyers also have a number of options, with condo listings up 17 per cent, while townhouses are up four per cent. However, the strong sales still don’t compare to the numbers seen back in 2007, during the boom.
“Resale market conditions have favoured the seller, and this has translated into price gains, which is strongest in the condominium sector,” added CREB chief economist Ann-Marie Lurie. “However, it is important to note that condominium prices have not yet risen above previous highs, whereas single family prices recovered last year.”
The average price of a condo in Calgary sits at $283,400, while buyers will have to fork over an average of $309,700 for a townhouse.