Condo sector reports year-to-date MLS sales up 19%
By Myke Thomas, Calgary Sun
After several years of declines, active MLS listings in the City of Calgary are on the rebound, according to the monthly report from the Calgary Real Estate Board (CREB).
New listings in November outpaced sales, resulting in a 22% increase in active listings but, even with the gain, listings remain below long-term averages, says Bill Kirk, CREB president.
“Over the past year, inventories have been low in the city, limiting some of the choice for consumers,” says Kirk. “While availability in specific segments and price ranges vary, on the whole, the recent rise in inventories will be welcome news for many buyers.”
Year-to-date sales in November recorded double-digit gains in all property types, with the strongest increase coming in the condominium sector, including apartments and townhomes, with a combined growth of more than 19%, putting both housing types at record levels, says Kirk.
“Overall, buyers looking for product under $400,000 will find more options in the condominium sector because supply levels have improved,” he says. “In the single-family sector, however, declining supply in that same price range has created much tighter market conditions in that segment.”
Single-family sales last month were down 1% from last November, although year-to-date sales are up 6% compared to the first 11 months in 2013.
New listings of single-family homes year to date increased 6%, accounting for easing growth in the single-family unadjusted benchmark price of $511,300 in November, a 9% increase over the previous year, but down from double-digit increases posted earlier in the year.
Unadjusted benchmark prices for condominium apartments and townhomes were $300,700 and $338,600, respectively, with both condominium sectors seeing price growth ease from double-digit levels.
“Tight market conditions earlier in the year caused significant aggregate price gains,” says CREB chief economist Ann-Marie Lurie. “It also resulted in a rise in new listings, supporting gains in inventory levels and a push towards more balanced levels. This has helped ease the upward growth pressure on prices.
“While Calgary’s price gains have garnered a significant amount of national attention, several indicators are pointing toward more stable conditions, easing risk associated with an overheating market.”
