The average price for single family homes climbed to a new peak a couple of months ago, but it wasn’t until the previous benchmark price high was eclipsed that we could officially say prices set a new record.
The benchmark price of single-family homes reached $452,900 in April, up from the previous peak of $451,300 in July 2007. The road to recovery took nearly 6 years.
On the other hand, Calgary condos are still on that journey. In April’s month-end statistics package, CREB reported that “unlike the single-family sector, however, condo apartment prices remain well below unadjusted highs recorded in 2007.”
How much exactly is “well below”?
Condo-apartment benchmark prices peaked in August 2007 at $297,000. Last month the benchmark price was $261,300. That means condo-apartment prices are still $35,700 or -12% below peak.
The same applies for Townhomes. That market segment crested in July 2007 with a benchmark price of $331,800. The benchmark price in April was $288,900 which mean prices are still down $42,900 or -12.9% from the high recorded in 2007.
Considering that condo prices are still a deal compared to the single family home segment, it’s no surprise that YTD sales for Condo-Apts are up 12.68% y/y, Condo-Townhomes are up 19.81%. Meanwhile, single family home sales are up 0.3%.
Why do you think it has taken a longer time for condo prices to recover compared to single family homes?