Robust demand and strong sales volume in Calgary continue to deplete standing inventory across all multi-family housing types in Q3 2023, according to exclusive data from Zonda Urban.
Released and unsold inventory levels fell by 12 percent quarterly, with new project launches not keeping up with demand.
Zonda Urban’s Q3 multi-family market take shows that new multi-family home sales totaled 1,459 in the third quarter, which is down 12 percent from Q2, but still represents an increase of 72 percent, compared to the same quarter last year and is well above the historical quarterly average by 69 percent.
Furthermore, activity in the third quarter is the third-highest quarterly sales total recorded in Calgary to date.
Townhome sales were particularly strong, building on gains from previous quarters. There were 673 townhome sales in Q3, registering 105 percent above the historic quarterly average.
Notably, this was the first time that townhome sales had increased for four quarters in a row. Sales volume for townhomes was also the second-highest on record in Q3.
Meanwhile, new condominium sales dropped by 28 percent from the previous quarter.
The relative affordability of Calgary to other Canadian cities, such as Toronto and Vancouver, continues to push momentum for demand, particularly with out-of-province buyers.
In fact, several of the new projects are being marketed specifically to Ontario investors.
As the gap between supply and demand shrinks, prices are climbing.
There was a 2.8 percent increase in prices across all unit types in Q3. Buyers in particular are gravitating towards townhomes, where prices increased by five percent quarterly and 19.3 percent, year-over-year.
Locally, the biggest quarterly price gain for townhomes happened in the Inner Southwest, where prices rose by 13.2 percent, followed by the Outer North, where prices climbed by 9.4 percent over the previous quarter.
In the demand-driven multi-family market, incentives continue to drop in number and value, but some that are still being commonly offered include a two-year rental guarantee, parking stall and storage locker included with purchase, $10,000 in design credits and two years of no condo fees.
Broader trendlines show consistent decline in multi-family housing standing inventory across all types, falling steadily since Q1 2021. Strong migratory trends towards Alberta are expected to buoy demand, continuing to put pressure on supply.
