Photo: Philippe Clairo/Flickr
Take a look at the Calgary skyline these days and you’ll see a flock of construction cranes, evidence that the city has become condo crazy. Of course, wherever there is a housing boom, bubble fears eventually follow. So, is the Calgary housing market — particularly the new condo market — in a bubble that’s in danger of bursting?
A new report from economic consulting firm Altus Group shows that new condo sales we’re “tempered” during the first quarter of 2014. According to their data, sales between January 1st and March 31st were 2.8 per cent lower compared to the the same three-month period in 2013.
“A decreasing supply of available inventory coupled with eroding affordability worked to moderate sales growth over the first three months of the year, particularly in the North and East sectors [of the city],” the report reads.
As for the remainder of the year, Altus predicts that, even with declining inventory and rising prices, the new condo market will perform in-line with 2013 figures as a low supply of resale condos continues to push buyers into the new market.
And what does Calgary’s new condo market look like right now? BuzzBuzzHome data shows that there are 5,227 condo units under construction in the city, 2,093 of which are currently available for purchase. The median price of a new condo sits at $325,000, or $451.82 per square foot.