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Friday, April 19th, 2024

Single-family homes for under $400,000 drying up in Calgary

Move over Toronto and Vancouver, Calgary’s condominium sector is red hot.image

The oilpatch set a new record for condominium resale activity for the month of August with a 14% increase in sales from a year ago. Townhouse sales were even stronger with a 20% jump from a year ago.

Meanwhile, single-family home sales declined during the period as listings for lower-priced property shrank during the period.

“The record pace of August sales in the condominium sector is related to the relative affordability of this product combined with a tight rental market and low lending rates,” said Ann-Marie Lurie, chief economist with the board, in a release. “More than 76% of condominium new listings are priced below $400,000 and represent more than 68% of the total inventory within city limits.”

The board said “apartment-style” new listings are up 40% year over year over the past three months, pushing up the inventory levels in Calgary and keeping the market balanced despite the strong sales.

Related Tracking foreign buyers in Canada’s housing boom: Can we do it? Should we even care? Canada house prices expected to rise further, fuelling fears of meltdown Single-family sales declined by 2.4% in August to 1,477 units. “The decline in single-family sales is mostly due to the shrinking supply in the under-$400,000 sector,” said Bill Kirk, president of the board, in the release. “Overall, sales activity has improved compared to last year for product priced over $400,000.”

The average single-family home in the city of Calgary sold for $542,238 in August, a 5.4% increase from a year ago. On the condo side, the average sale price was $332,006 last month, an 11.5% increase from a year ago.

“The composition of apartment sales shifted toward the higher-end segment this month compared to last month, resulting in higher monthly gains,” said Ms. Lurie.

Housing figures for Toronto and Vancouver are due out later this week.

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