Continued double-digit gains in the condominium apartment sector helped to fuel a 10 per cent increase in Calgary’s residential resale housing market in October.
Two consecutive years of relatively strong employment and population growth, combined with rising wages and low lending rates, have supported demand growth in our housing sector.
With a 14 per cent gain, the city’s condominium apartment sector recorded the largest year-over-year growth. It represents the sixth consecutive month that sales in this category have increased by double digits – due, in large part, to better selection of relatively affordable product. More than half of this year’s new listings have been priced below $300,000.
Tight rental market conditions combined with low mortgage rates have supported demand growth for condominium product in Calgary. Much of this demand is coming from both first-time homebuyers and investors.”
Rising listings relative to sales activity has caused apartment inventories to improve. This has pushed this sector into more balanced territory, reducing some upward pricing pressures and giving buyers more options. Meanwhile, year-over-year condominium townhouse sales growth eased to eight per cent in October compared to the same period last year. Year-to-date sales, however, are still up 19 per cent to 3,303 units. New listings have similarly kept pace, creating access to more inventory for buyers.
Much like the condominium sectors, October sales in the single family market experienced healthy gains, growing by 9.7 per cent to 1,462 units compared to same period last year. As of October, only 18 per cent of new single-family listings were priced below $400,000 and only 387 remained in inventory by the end of the month
While buyers can still find single-family product priced under this threshold in Calgary, the selection has consistently declined over the past four years. 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.
Single-family, apartment and townhouse benchmark prices totaled a respective $513,500, $299,800, and $337,800 in October. While all sectors saw unadjusted monthly prices level off and growth ease, year-over-year increases remained above nine per cent across all categories due to gains achieved this past spring.
All citywide resale segments have recorded a moderate easing of supply constraints, which should help stabilize prices as we approach the end of the calendar year. Nonetheless, consumers should be aware that market conditions can vary significantly depending on the location and property type.