Homebuyers going to Town

By KATIE SCHNEIDER, SUN MEDIA

Condominiums and houses sold better in McKenzie Towne last year than any other community in the city, say 2008 Calgary Real Estate Board home sales statistics.

When combining the number of condominiums and single-family homes sold last year, 603 were sold in McKenzie Towne, 531 were sold in Tuscany and 495 were sold in Coventry Hills.

Calgary Real Estate Board president Ed Jensen said people, especially those in the middle class, are flocking to areas such as McKenzie Towne, which sold 235 condos at an average price of $273,817, and 368 single-family homes at an average of $386, 836, because of their price range and amenities.

"It's a big area, it's a good location with the new hospital going in, good amenities, land is available at a reasonable price," he said.

He said Coventry Hills, which sold 479 single-family homes and 16 condominiums, is attractive to people who want quick access to downtown or the airport via Deerfoot Tr.

And Tuscany, where 73 condos and 458 single-family homes sold, appeals to those who want a quick drive west.

"People choose Tuscany because it has quick access to downtown corridor and has good access to the mountains," he added.

And with a slowdown in building last year after a boom of construction in 2006, excess inventory is now available, Jensen said.

Analysts say the large number of existing homes for sale will continue to depress the new-home market in the new year and put downward pressure on prices.

Residential construction in Calgary has actually dragged to lows not seen in more than a decade because of the bruised economy.

Last year, 4,387 foundations for single-detached homes were poured in the Calgary metropolitan area, 44% fewer than in 2007 and the same number of foundations poured for single-detached homes in 1995, the last time Calgary construction levels were this low.