Calgary’s condo market booming as average price for single-family homes tops half a million

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Garry Marr | November 3, 2014 | Last Updated: Nov 3 4:11 PM ET
More from Garry Marr | @DustyWallet

Postmedia NewsCondo sales shot up for the sixth straight month in Calgary as buyers look for cheaper options to single-family homes now going for over half a million .

Affordability issues are helping fuel the local condominium market which saw sales climb 14% in October from a year ago, the Calgary Real Estate Board said Monday.

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Condo sale increases from a year ago have reached double digits for six straight months and last month’s gains were credited for the city’s overall sales numbers being up 10% from October, 2013. The board’s benchmark index price for a single-family home reached $513,500 in October compared to $299,800 for a condo.
“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 Bill Kirk, president of the board, in a release.  “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.”
The board notes half of new listings in the condo market are priced at under $300,000, a level attracting consumers. “Tight rental market conditions combined with low mortgage rates have supported demand growth for condominium product in Calgary,” said Mr. Kirk, pointing to apartment sales setting a year-to-date record of 4,202. “Much of this demand is coming from both first-time homebuyers and investors.”
Condo listings are also on the rise, up 30% over the first 10 months of the year compared to a year ago. That pace, which is outstripping sales, has allowed inventory to rise and ultimately kept condo prices down.
Only the flip side, single family homes are becoming more expensive with only 18% of new single-family-home listings under $400,000 in October. By the end of the month, Calgary had only 387 single-family homes priced under $400,000.
“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,” said Mr. Kirk.