Why choose a condo?
Lifestyle a prime motivator as market perks up
By Marty Hope
Edmonton Journal
November 7, 2009
Condo living is a lifestyle choice--it reflects how the owners use their time, or how they want to use it.
They don't want to shovel snow, cut grass or tend gardens. They want to be able to get up and go, enjoy leisure time, or pack up and go on vacation without the security worries that go with a house.
Baby boomers, empty nesters and young people make up the bulk of the condo demographic.
For Kathi and Rob McAuley, the decision to go condo had definite implications for their work and leisure time. The 50-something professionals had been shopping the condo market off and on for a year before taking ownership of a resale townhouse in west Calgary.
Demand for condominiums in Calgary and Edmonton has been growing for more than a decade.
On the new side, despite the slowdown that has put a severe crimp in construction activity, work continues on mid-and highrise buildings in the two cities' downtowns. In the suburbs, foundations are being dug and framing is underway on semi-detached homes and townhouses.
While the economy has battered the multifamily sector, there are signs of recovery. In September, the City of Edmonton issued building permits for 218 multi-family units, compared with 193 for the same month last year.
On the resale side, there has been a decided increase in sales. But the growth in condominium appeal has been going on for years.
While condos accounted for just 15 per cent of total resales 15 years ago, it's now almost double that.
"Indeed, we have seen a slowdown in the number of condos being built, but this is a form of ownership that is here to stay," says Bonnie Wegerich, Calgary Real Estate Board president.
"Condo resales are rebounding in a trend similar to single-family homes.
Home prices in Edmonton have remained relatively stable despite the robust activity in the market. Prices for single-family homes in October were $363,694, down 2.2 per cent from September, but up 0.12 per cent from the same time last year.
Edmonton condos sold for an average of $237,601 in October, down 3.2 per cent from September, but unchanged from a year earlier.
Overall, the average residential price in October was$318,969, down 2.5 per cent from last month and up 0.33 per cent from October 2008.
Wegerich says the McAuleys fit one of the demographic models for condo ownership. The couple spends a lot of time at a second home in Invermere, B.C., and felt they didn't want to continue with the maintenance needed for their house and property.
"We wanted a place that more reflected our present phase of life," says Kathi, who owns a learning and development consulting company called Management DevelopMentors Inc. and also teaches at the University of Calgary.
But there was much more than that to their decision to buy a condo. "We love trees and back onto a treed green space, so this was very important to us," Kathi says. "Even though we are in a condo, it doesn't have a restricted feel to it."
They bought a three-level, 5,000-square-foot condo for $880,000. Their previous home covered 2,000 square feet.
The other target demographic for condo ownership is the millennial generation -- people born between the late 1970s and the early 1990s. "They are both at a stage where they want similar things," Wegerich says.
For many of the millennials, condominium living is their first taste of home ownership, but likely not their last.
Devon Wolfe and Priscilla Naber, both 20, are looking for their first home.
CHOICE
"We primarily chose a condo because of the lifestyle," says Wolfe, a full-time architecture student at the University of Calgary. Maintenance was a turnoff.
"Also, we were looking for more of a stepping stone than a final home and condos seem to fit that," he says.
As they continue their search, they've established some limits: They want a condo that's 700 to 1,000 square feet, and costs from$220,000 to $260,000.
Wendy Jabusch, general manager of Hawthorne Homes, the multi-family building division of Carma Developers, says it's typically young singles and couples who are buying the company's units.
Affordability is a big part of the buying decision, Jabusch says. "Our buyer demographic-- singles and couples in their late 20s and early 30s--are very cognizant of affordability and quality, so we have to work with our trades and suppliers to reduce the number of deficiencies, and thereby save money.
"Young buyers are smart, well-informed and have a clear idea of what they can afford and are willing to spend."
Lifestyle a prime motivator as market perks up
By Marty Hope
Edmonton Journal
November 7, 2009
Condo living is a lifestyle choice--it reflects how the owners use their time, or how they want to use it.
They don't want to shovel snow, cut grass or tend gardens. They want to be able to get up and go, enjoy leisure time, or pack up and go on vacation without the security worries that go with a house.
Baby boomers, empty nesters and young people make up the bulk of the condo demographic.
For Kathi and Rob McAuley, the decision to go condo had definite implications for their work and leisure time. The 50-something professionals had been shopping the condo market off and on for a year before taking ownership of a resale townhouse in west Calgary.
Demand for condominiums in Calgary and Edmonton has been growing for more than a decade.
On the new side, despite the slowdown that has put a severe crimp in construction activity, work continues on mid-and highrise buildings in the two cities' downtowns. In the suburbs, foundations are being dug and framing is underway on semi-detached homes and townhouses.
While the economy has battered the multifamily sector, there are signs of recovery. In September, the City of Edmonton issued building permits for 218 multi-family units, compared with 193 for the same month last year.
On the resale side, there has been a decided increase in sales. But the growth in condominium appeal has been going on for years.
While condos accounted for just 15 per cent of total resales 15 years ago, it's now almost double that.
"Indeed, we have seen a slowdown in the number of condos being built, but this is a form of ownership that is here to stay," says Bonnie Wegerich, Calgary Real Estate Board president.
"Condo resales are rebounding in a trend similar to single-family homes.
Home prices in Edmonton have remained relatively stable despite the robust activity in the market. Prices for single-family homes in October were $363,694, down 2.2 per cent from September, but up 0.12 per cent from the same time last year.
Edmonton condos sold for an average of $237,601 in October, down 3.2 per cent from September, but unchanged from a year earlier.
Overall, the average residential price in October was$318,969, down 2.5 per cent from last month and up 0.33 per cent from October 2008.
Wegerich says the McAuleys fit one of the demographic models for condo ownership. The couple spends a lot of time at a second home in Invermere, B.C., and felt they didn't want to continue with the maintenance needed for their house and property.
"We wanted a place that more reflected our present phase of life," says Kathi, who owns a learning and development consulting company called Management DevelopMentors Inc. and also teaches at the University of Calgary.
But there was much more than that to their decision to buy a condo. "We love trees and back onto a treed green space, so this was very important to us," Kathi says. "Even though we are in a condo, it doesn't have a restricted feel to it."
They bought a three-level, 5,000-square-foot condo for $880,000. Their previous home covered 2,000 square feet.
The other target demographic for condo ownership is the millennial generation -- people born between the late 1970s and the early 1990s. "They are both at a stage where they want similar things," Wegerich says.
For many of the millennials, condominium living is their first taste of home ownership, but likely not their last.
Devon Wolfe and Priscilla Naber, both 20, are looking for their first home.
CHOICE
"We primarily chose a condo because of the lifestyle," says Wolfe, a full-time architecture student at the University of Calgary. Maintenance was a turnoff.
"Also, we were looking for more of a stepping stone than a final home and condos seem to fit that," he says.
As they continue their search, they've established some limits: They want a condo that's 700 to 1,000 square feet, and costs from$220,000 to $260,000.
Wendy Jabusch, general manager of Hawthorne Homes, the multi-family building division of Carma Developers, says it's typically young singles and couples who are buying the company's units.
Affordability is a big part of the buying decision, Jabusch says. "Our buyer demographic-- singles and couples in their late 20s and early 30s--are very cognizant of affordability and quality, so we have to work with our trades and suppliers to reduce the number of deficiencies, and thereby save money.
"Young buyers are smart, well-informed and have a clear idea of what they can afford and are willing to spend."
Photos by: Marc Curtis
