In a bustling Calgary real estate market, condos have become the talk of the town.
Compared to February 2012, combined condo apartment and condo townhouse sales in Calgary this February increased by 11 per cent. The boost in condo sales, in part, can be attributed to a tightening market on homes $500,000 and less available in the city.
“While both condo and singlefamily markets remain in balance, the single-family market is much tighter and bordering on sellers territory,” said Ann-Marie Lurie, CREB®’s chief economist.
“Demand has improved for condominiums, helping reduce the overall inventory levels, firmly placing the market in balanced territory and supporting some price growth in this segment.”
The average price for Calgary condo apartments (consisting of high or low rise buildings) in February was $287,733, a 0.43 per cent decrease in price when compared to February 2012. Calgary condo townhouses (townhouses, row houses etc.) averaged $336,322 this February, an 8.47 per cent increase compared to February 2012.
With the average single-family home selling in Calgary for $518,479 in February, affordability can be a huge factor for some buyers making the decision to purchase a condo.
Making the move from High River, with a job in the south end of Calgary, Darcie Penner bought a condo in the community of New Brighton for its proximity to work, the fact she wanted to be in a newer community and affordability.
“For me, the biggest reason was financial,” she said.
While affordability can be a main reason to purchase a condo, Calgarians also aren’t afraid to splurge on higher end products, as luxury condo sales have also been making their mark in Calgary lately. The Calgary Herald reported nine luxury sales between March 1-21, the highest ever for any month eclipsing the previous record of seven set in October 2007 and June 2011.
Last year saw two record-breaking condo sales for The River, currently in construction on 26th Avenue in the community of Mission. In early 2012, a unit sold for $8.3 million, a record eclipsed a few months later with an $8.99 million sale in May.
Dubbed Calgary’s “unofficial bird” by the Herald, construction cranes have been popping up all over Calgary. Aside from The River, new condo developments include Sawyer in Silverado; Keynote in Victoria Park and FUSE and First in East Village, the latter breaking ground this past February.
“Calgary is a unique market; we have enjoyed a great response to our initial product offering and now with permitting in place, we are starting construction immediately,” said Fred Serrafero, vice president, FRAM Building Group – behind the FIRST project.