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Housing Market Watch – October 2014

“Airdrie on Pace for Record Sales”

Column by Realtor® Gary Lock

Airdrie’s September home sales increased of 26% from last year and outpaced the national sales increase (10%), Calgary’s (12%) and other surrounding areas. According to CREB, “Airdrie’s residential resale housing market posted its best third-quarter ever and is on pace for record sales.” With our typical lower priced housing and increasing population, Airdrie continues to experience increasing sales activity.

The year-to-date (YTD) home sales are lead by Cochrane (38%), Airdrie (28%), Okotoks (15%) and Calgary (11%). CREB reported sales activity totalled 455 units between July and September, a 16% jump from last year. New listings in Airdrie outpaced sales during the 3rd quarter, rising 26% compared to last year. The improved inventory helped take some of the pressure off prices, as the 3rd quarter gains slowed to 2.5%, as compared to 4% in the 2nd quarter.

The past 18 months Airdrie has been in a sellers market, homes are on the market less days and selling closer to the list price. CREB’s data shows the seller’s market is helping with the YTD average price increase of 8.98% from $355,084 to $386,962. DOM (days on market) YTD is 31 days as compared to 41 from last year.

The increased number of sales for apartment condos continues into the fall. The YTD sales are 117, an 95% increase from last year! The average sale price is 7.6% increase from $191,000 (2013) to $206,000 (2014) YTD. The DOM for apartment condo continues to decrease… with 34 DOM.

Condominium townhouse sales continue to be healthy, with a 16% increase YTD (140 to 163), DOM are down 33% to 28 DOM. Average sales price for townhouses YTD is $282,000, up 9.5% for the year from $258,000 in 2013.

When looking at the combined average price of townhouse and apartment condos in 2007 at $259,698, the YTD 2014 average condo price in Airdrie is $253,707, still not fully recovered. The lowest condo average YTD price was in 2011 at $210,303. Airdrie’s single-family YTD average high was in 2008 ($379,581) and was surpassed last year ($388,625).

The total Airdrie’s single-family home sales have increased 25% YTD from 2013 (934 units in 2014 from 747 in 2103). The average sales price for a single-family home YTD is up 11% to $426,934 from $385,408. Days on the market decreased 27% from 40 to 29 days.

According to CREB, “While added inventory eased some of the tightness in the Airdrie market, overall conditions continue to be in favour of the seller. Airdrie resale homes tend to be newer than those in Calgary, however lot size and square footage are still comparable. Low interest rates, rising wages, positive net migration and tight market conditions in the Calgary area continue to impact the surrounding area resale housing market. Calgary’s inventory levels continue to be below normal and the current demand is closer to a balanced market than sellers.”

Gary Lock is a local Realtor® with CIR Realty and has lived in Airdrie for the past 30 years.