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Housing Market Watch – Fourth Quarter 2013

“Airdrie Single-Family Home Values Exceed Previous Market Highs!”

The total residential sales for 2013 were 1323, seven short of the high of 2007’s 1330 home sales. Last year we experienced 7 months where the average price of residential homes exceeded the high of the 2008 at $353,540. The average residential resale price for last year was $356,659. Last year also marked the second consecutive year of strong sales activity with a 15% increase over 2012. Airdrie’s best month ever was in July when 149 of the 194 homes listed sold! (78% sold).
CREB’s chief economist Ann-Marie Lurie, credits the sales growth to net migration, combined with an improving job outlook and confidence surrounding long-term economic prospects.
The good news for many is that the average single-family home price for 2013 was $388,625 exceeding 2008’s high of $379,581. This was a 4.85% increase over last year. According to CREB, with the recovery of single-family home prices, new listings rose in the last three quarters of the year, and a strong fourth quarter increase of more than 10%. Demand outpaced the growth in new listings resulting in reduced supply. This created ten consecutive months of a “sellers market” for Airdrie.
Market conditions favoured the seller for much of 2013, causing price gains in both the single-family and condominium sectors, however condominium prices have not recovered to the 2007 high of $259,698. Last year the average price for Airdrie condos was $239,713, nearly $20,000 below the high. Townhouse condominium average price increased 7.31% from 2012 and apartment condominium average price increased by 8.34%.
Double digit aggregate sales growth continue in Okotoks, Airdrie and Cochrane by nearly 12%, while each surrounding town is different, on the aggregate, single-family homes in surround communities tend to provide newer and larger homes at a lower cost than Calgary. Airdrie had a 14.67% growth in sales from 2012, Okotoks a 19.49% increase with 2 months inventory and Cochrane with a moderate increase of sales by 9.06% but the new listings increased even faster resulting in an inventory of more than four months (balanced market). Calgary saw an 11% growth in sales volume while ending the year with two months of inventory as compared to Airdrie’s 1.2 months inventory.
Airdrie new home builds are up from last year with 774 new single-family a home builds, 156 duplexes, 551 apartment units and 291 townhouse builds. Airdrie’s 2013 census results reflected on much of the local growth of the residential new home and re-sale with an 8.42% population growth rate, as compared to the 5.92% in 2012 and 8.37% in 2011. Again, Luxstone boasts the highest population of 3456 by community with the total of 49,560 residents in Airdrie.
Coopers Crossing was the first community to sale a property over a million dollars in 2012 and repeated it once again in 2013 with the sale closing at $1,075,000, originally listed at $1,250,000 taking 216 days to sell.
According to CREB, Alberta is expected to lead Canada in 2014 with a 3.6% growth driven by net migration of 15,000 people, a tight rental market and continued employment growth.
Gary Lock is a local Realtor® with CIR Realty and has lived in Airdrie for the past 28 years.