New condo sales have climbed 11.5 per cent so far this year compared to the same time last year, says a new report from Altus Group.
As reported by the Calgary Herald:
The new report said sales reached 2,555 units between January and September compared with 2,292 for the same period a year ago.
It said 4,327 new condo units were under construction at the end of September, up from 4,263 a year ago but starts were down to 1,537 from 2,780 last year.
And the upward swing in condo sales isn’t relegated to just the new construction stock either. According to the latest data from the Calgary Real Estate Board, the resale condo market has seen a 15.19 per cent spike in sales over the last 12 months while the average price sits at $299,725 — a 5.72 per cent increase from the same time a year ago.
Speaking to the Calgary Herald, Richard Cho, senior market analyst for the Canada Mortgage and Housing Corporation, said while there are a number of reasons for the uptick in Calgary condo sales, one of them concerns affordability.
“Many first-time homebuyers have made the move into homeownership this year with the purchase of a condominium unit. Condo units on average are priced lower compared to single-detached homes, making them an attractive option for many of these buyers,” Cho told The Herald.
According to RBC’s latest housing affordability rankings, the average Calgary household would have to devote 19.6 per cent of its pre-tax income to be able to afford a condo at current market values. For a detached-bungalow or two-storey home, that percentage climbs to 33.7 per cent and 34 per cent respectively.
For more on the Altus Group’s new condo report, read the Calgary Herald article here.