Are increasing home prices in Calgary pushing folks out of single family homes and into townhouses and condos?
From the CREB update: "While conditions are now more balanced, the composition of the single-family market has changed," said Lurie. "One-quarter of year-to-date sales in the sector has been for product priced below $400,000. Last year, it represented 35 per cent of the market share. Two years ago, it accounted for 44 per cent of all single-family sales."
With that the condo market is seeing a larger increase than single family homes: "For the fifth consecutive month, year-over-year condominium apartment sales growth outpaced growth in the single-family sector. Year-to-date condominium apartment sales totaled 3,819, a 21 per cent increase over last year. This compares with a seven per cent increase to 13,842 units in the single-family market over the same time frame."
While some folks are extending themselves to purchase higher value property, many young families are working hard to stay within their means. Surprisingly it is the younger crowd that tells me they are approved to values much higher than their search maximum when buying a new home. They have families to raise, trips to plan and lots of life to live. The current rental market is encouraging many to look at ownership when they look at the numbers but with budgets in hand.
Rent for a 2 bedroom aparment: $1700 per month = $20,400 per year or $102,000 over 5 years.
Typical suburban home: $2400 per month = $28,800 per eyar or $144,000 over 5 years.
Population predictions are expecting Calgary's population to increase by another 500,000 people by 2042. We all have to live somewhere.