Are presales juicing Calgary condo-apartment MLS® sales figures?
Between January 1 and November 11 of this year there were 3,112 units sold. Of those, I found only 30 of them were for condominiums still under construction that had a possession date of 2013 or later.
That means less than 1% of the total sales, or an average of about 3 per month, were presales. Frankly, presales have been a very modest part of Calgary MLS® sales this year.
Presales were found in condo projects such as: (approximate possession date in brackets)
- PIXEL (Nov 2013)
- The RIVER (September 2014)
- Drake (September 2013)
- Fuse at Evolution (2014)
- Alura (2014)
- Calla (August 2013)
- UNO (February 2013)
- The Block (2013)
- Tribeca (Fall 2013)
- Next (February 2013)
Where these presales are having an impact is in terms of the month-end average price.
The 30 sales averaged $573,978. Year-to-date, this has contributed to an average price increase of around $3,000.
Where it`s having more of an effect is in terms of the month-end average due to presales from some of the luxury units sold.
For example, 3 units have sold at the RIVER ranging in price from $1,490,000 to 3,290,000.
I`m not hinting that this particular project will suffer the same fate. However do you think presales for a project that is years away from completion be included in the current month-end figures?
Without the $3.29M RIVER unit that sold in June, the condo-apartment month-end average price would have been $292,505 instead of $301,348. The median price on the other hand would have fallen only $1,000 to $259,000.
This is another reminder not to focus so much on the average price, especially this year with luxury homes sales setting an all time record in Calgary and still adding to the total.
When the market has been as brisk as Calgary`s has been, there is less incentive for builders to list on MLS® since they would prefer to sell inhouse.
View Calgary presales on MLS®: click to view