Cranes have become a ubiquitous sight for Calgarians as condo construction is booming once again.
With booms come fears of busts, so it’s important to track the market and watch for signs of overbuilding or waning demand.
Altus Group has released their Q1 2014 multi-family market update which provides insight into the new condo market that simply isn’t possible using just MLS® statistics.
- Q1 sales were down -2.8% y/y
- Available inventory was down -7.2% y/y
- There are less than 120 available move-in ready units on the market, over 1/3 in the Centre Sector and generally priced at levels out of reach for the broad market
- The 2,200 condominium units currently available in the market represent less than two quarter’s worth of sales at the pace which occurred over the first three-months of 2014
- Pricing levels continue to escalate in the first quarter of 2014 as inventory levels decline and demand remains strong
- Wood frame low-rise product at some projects is now averaging more than $500/SQFT, while new concrete high-rise developments are now entering the market at $600/SQFT or more
Download the Atlus Group report here