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Market Watch – 3rd Quarter 2013

Airdrie Condo Market Out Paces Last Years’

Column by Realtor Gary Lock

Airdrie condominium resale market sold more in the first 8 months in 2013 as compared to ALL of 2012 sales. Single-family homes account for nearly 80 per cent of the sales activity, of which more than 60 per cent of those sold this year were priced below $400,000.
After the first three quarters of the year, residential sales totaled 1,058 units – a 14 per cent increase over the previous year. Townhouse condominium sales produced the greatest increase with over 55% increase from last year with 102 in 2012 and 158 sales in 2013. Apartment condominium sales grew 16% over last year.

According to CREB “our sales growth over the first two quarters had been dampened by overall declining listings, but it surged in the third quarter as the level of new listings significantly improved. As is the case with most surrounding areas, affordability is one factor drawing in consumers”. Comparing Airdrie’s 2012 to 2013 third quarter total sales, we were up nearly 40% – as YTD sales comparisons are up 14%, so activity for our summer was unusually high.
With 8 out of the last 12 months as a sellers market, homes are on the market for less time and are selling closer to the list price. Our over all inventory in Airdrie is still low, not keeping pace with the rise of sales. CREB indicates these tighter market conditions have supported year of year price gains of more than seven per cent.
CREB’s data shows our seller’s market is helping maintain an overall price increase of 2.57% with the average price in 2012 of $346,000, rising to $355,000 for 2013 YTD. The most gain in the average sale price increase was in apartment condominium with an 8.34% over last year. If you compare the average price of condos from the 2007 highs of $260,000 and our current average of $240,000 we still have not fully recovered. 2013 YTD sales indicate this is the year that our average single-family home price has recovered to the 2007 highs.
Comparing month-to-month home prices does not provide much of a trend in the housing market. For example apartment condo prices from Sept 2012 to 2013 went down 2.85%, however, the average YTD price comparison went up 8.34%. Similar, with townhouse condominiums for September 2012 to 2013 price comparisons with up 10.8%, while the YTD comparisons are up 6.75% – which provide a better overall market trend.
When reviewing the surrounding areas, Calgary’s market remains in seller’s territory with slight increase in the inventory levels. CREB indicates the third quarter sales in Cochrane and Okotoks all reached highs for the quarter, mostly driven by the single-family home sales. While conditions vary in each town (Cochrane in balanced market), Airdrie and Okotoks in sellers market… the average single family homes tend to provide newer and larger homes at a lower cost relative to homes in Calgary.
Gary Lock is a local Realtor® with CIR Realty and has lived in Airdrie for the past 29 years.