Housing activity is on the rise in Calgary’s surrounding areas with double-digit sales growth in Airdrie, Okotoks and Cochrane by the end of the third quarter. Year-to-date, 4,449 units were sold in all surrounding areas, which represents a 26 per cent increase over the previous year.
“After the first three quarters of the year, sales activity continues to climb at a good pace in surrounding communities," says CREB® president Bill Kirk. “Many of these areas offer a lifestyle choice that appeals to consumers, with home prices that are generally more affordable.”
Overall benchmark prices and year-over-year growth has been higher in Calgary compared to the overall surrounding areas. In the third quarter, typical single-family home prices in Airdrie, Cochrane and Okotoks were 32, 15 and 18 per cent lower, respectively than in Calgary.
“Low interest rates, rising wages, positive net migration and tight market conditions in Calgary continue to support the demand growth in the regional resale housing market this year," says CREB® chief economist Ann-Marie Lurie. “As supply levels for homes priced under $400,000 in the single-family market have declined in the City of Calgary, many consumers are considering their options in surrounding areas.”
Sales growth in Airdrie is on pace for a record year after the city posted its best third quarter ever. Sale activity totaled 455 units between July and September, a 16 per cent jump relative to last year. Year-to-date sales have increased by 28 per cent to 1,354 units.
While sales in Okotoks declined by six per cent in the third quarter to 198 units, year-to-date activity remains 15 per cent above the first three quarters of last year. This quarter's decline can largely be attributed to record levels reported during the same period last year.
New listings increased in Okotoks by 12 per cent to 246 units during the quarter. This helped to ease market tightness and price growth compared to the second quarter of this year. The single-family benchmark price in the third quarter averaged $417,967, a 0.3 per cent increase from the previous quarter and a 7.46 per cent year-over-year increase.
Cochrane sales continue to outpace gains in new listings, pushing inventory levels and months of supply down. Reduced inventory has supported price gains in Cochrane. Single-family average benchmark prices totaled $433,933 in the third quarter, a 2.87 per cent increase over the previous quarter and 6.9 per cent increase relative to the same period last year.