Towns surrounding Calgary set quarterly sales record
Airdrie, Cochrane and Okotoks all recorded the highest third-quarter sales activity on record, mostly as a result of gains in the single-family homes sector.
Weaker activity in High River following the floods did not outweigh the aggregate gains recorded in the surrounding towns. Sales in surrounding towns totalled to 1,288 units, 22 per cent higher than third-quarter sales in 2012.
“Affordability and lifestyle preference play a significant role for consumers considering surrounding communities,” said CREB president Becky Walters. “These areas tend to provide single-family homes that offer more features at a lower cost than what can be found in the city.”
Tight rental market conditions, combined with declining supply of affordable single-family homes in Calgary, supported growth in surrounding communities. The additional demand occurred as a result of the flood, further boosting growth in the typically more affordable bedroom communities.
“The entire region has benefited from the economic prosperity, as employment gains and stronger than expected net migration has supported housing demand,” said Ann-Marie Lurie, CREB’s chief economist.
“In surrounding areas, sales growth has outpaced the level of new listings and this has placed downward pressure on inventories, while supporting price gains. However, price levels remain significantly lower than those in the city and are growing at a slower pace.”
As of September, a typical single-family home in surrounding towns reached $351,400, a year-over-year increase of five per cent. Meanwhile, Calgary single-family homes benchmark prices totaled $463,700 in September, a seven per cent increase over the previous year.
Airdrie’s pricing for a single-family home reached $365,100, surpassing unadjusted highs recorded in 2007. Residential sales in Airdrie also saw a 14 per cent increase over the previous year, totalling 1,058 units. Eighty per cent of sales activity was attributed to single -family home sales, of which more than 60 per cent were priced below $400,000.
Sales in Cochrane totaled 441 units, a seven per cent increase relative to 2012. However, Cochrane’s new home listings increased significantly, preventing erosion of inventory levels there compared to the other towns. New product sales accounted for 20 per cent of the transactions recorded in Cochrane, higher than Airdrie, Okotoks and Calgary. Pricing for a single-family home in Cochrane averaged $405,933, a five per cent increase over the previous year.
For more information, visit www.creb.com