Apartment sales overtake home sales in Calgary: Realtors – Calgary

Calgary’s apartment real estate market appears to be experiencing a renaissance, following more than two years of the ongoing COVID-19 pandemic and nearly seven years of depressed economic conditions following the 2015 oil glut.

“It’s been really interesting to look at the data over the past two years,” Robert Price, founder and CEO of Bode, told Global News.

Bode data shows apartment sales over the past three months are up 85%, outpacing 5% for single-family properties, compared to the most recent four-year average.

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Price said early pandemic trends showed a flight to less compact, more spaced-out properties.

“And what we’ve seen in the last four months is actually a sea change in the other direction: reurbanisation.”

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Recent data from the Calgary Real Estate Board (CREB) confirms the upward trends in demand for apartments.

CREB Q2 2022 report showed that apartment sales rose 46.7% year-over-year, while single-detached homes fell 14.2% year-over-year. But the citywide benchmark single-detached home price rose 16.6% from the same quarter a year earlier, outpacing the 9.4% increase in the benchmark apartment price.

“I think we have more people coming to town now – we have more people looking for a more reasonably priced place to live,” said Bev Clark of KNAG Real Estate and Property Management. “And obviously condos are more reasonably priced than single-family homes.”

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Clark said the race for single-family homes in 2020 has contributed to an increase in the supply of condominium apartments.

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“And now the number of condominium listings is going down, which means we’re going to go from low prices to maybe a little more than low prices, but we’re not going to go up in the condominium market anytime soon because there are so many new products to come,” she said.

Price said rising interest rates push people toward low-cost apartment buildings. And the return to the office is causing buyers to reconsider their distance from the workplace.

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“If you worked from home for two years and never had to come, and now you have a 40-minute drive and expect to be in the office three, four or five times a week, this is a dramatic difference to your lifestyle,” he said.

On Friday, the Canadian Real Estate Association released its latest quarterly forecasts, showing that home sales continue to decline as interest rates rise. He expects sales in Alberta to plateau in 2023 after rising 8.9% this year.

Clark noted that recent stock market performance may prompt investors to look to real estate for value and stability.

“But we also see many owners who see an opportunity to recoup at least some of their losses. So we see that too,” the real estate agent said.

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“Now is the perfect time to buy. It’s the perfect time to sell, if it’s the right time for you.

© 2022 Global News, a division of Corus Entertainment Inc.

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