Surge in condominium sales contributes to unprecedented sales figures
Calgary's housing market achieved a May record for sales, driven by a surge in condominium sales.
The Calgary Real Estate Board (CREB) reported that the number of properties changing hands reached 3,120, a nearly 2% increase compared to last year.
The market's benchmark price also saw an increase, with the unadjusted benchmark condo price reaching $298,600, up 1% from April and approximately 11% from the previous year.
The rise in condo apartment sales contributed significantly to the overall sales growth.
Condo sales in May were up by 36% compared to May 2022, with 858 units sold.
This boost in sales was attributed to an increase in new listings, with 1,025 units added to the market during the month.
While the record-breaking sales figures are promising, year-to-date sales remain almost 30% behind last year's numbers.
The market has not yet fully recovered from the declines seen earlier this year.
The number of new listings also continues to decrease compared to the previous year, dropping 15% to 3,652 properties listed in May.
CREB's chief economist, Ann-Marie Lurie, explained that the higher interest rate environment and recent rental rate gains are driving more people to seek apartment and condo units.
She also noted that Calgary's relatively healthy job market and recent population growth contribute to strong housing demand across all property types.
“Calgary continues to benefit from the relatively healthy job market and recent population growth keeping housing demand strong across all property types,” Lurie said via a press release.
Sales of detached homes experienced an 8% decrease compared to May 2022, with 1,486 properties sold.
However, the benchmark price for detached homes reached $674,000, showing a 2% improvement from April and over 4% higher than the peak price of $647,000 last year.
Limited choices remain for consumers seeking lower-priced detached homes, as new listings for homes priced below $700,000 continue to decline.
The market's benchmark price stood at $557,000, representing an almost 3% increase, while the average price rose approximately 6% to $551,853.
Have something to say about this story? Let us know in the comments below.
