As condo prices fall, potential buyers should factor in rising fees, experts say - BERITAJA

Over the past respective years, imaginable homebuyers whitethorn person recovered themselves struggling pinch the rising costs of housing, but successful 1 conception of the existent property market, things are looking up.

April information from the Calgary Real Estate Board shows that 2 types of the condominium marketplace — statement houses and apartment-style units — are seeing expanding inventory alongside slow sales.

That has resulted successful a important year-over-year diminution successful the benchmark price. Row homes are down about six per cent, astatine $422,800, while apartment-style units are averaging $300,375 done the first 4 months of the year, down 9 per cent from 2025.

One realtor says it’s presented 1 of the rosiest markets for first-time homebuyers.

“With the accrued affordability and inventory, it’s really giving buyers the expertise to choose,” explains Anna Kaufman pinch the ARK Real Estate Team.

Kaufman says galore of her buyers are exercising that correct to beryllium choosy these days — successful portion because of condo fees aliases the threat of typical assessments connected immoderate imaginable properties.

“Typically erstwhile we’re dealing pinch first-time homebuyers, they’re connected a constricted budget, truthful erstwhile we’re talking about typical assessments, they whitethorn conscionable not person that (money available).”

Condo fees are paid by owners of each portion to money building maintenance, spot upkeep and immoderate services that whitethorn beryllium contained wrong the complex.

In Alberta, the mean costs is about 50 cents to $1 per quadrate foot.

But arsenic immoderate of the province’s older condo buildings travel of age, the clip comes for large-scale undertakings specified arsenic tile replacements, pavilion waterproofing aliases parking car shed repairs.

One master says specified fixes could costs owners thousands of dollars successful a short play of clip if a condo committee decides to enact a ‘Special Assessment.’

“Nowadays, I’m seeing it much and more,” says Keowna Furuness, a condo archive reviewer pinch Condo Check.

“It’s a operation of ample ticketed items coming up, but besides a measurement of keeping it truthful (condo boards) don’t person to importantly summation the fees to build up that fund.”

“In the end, the numbers person to balance,” explains Shameer Gaidhar of the Calgary Inner City Builders Association.

Gaidhar has worked connected respective multi-family projects that require early owners to salary condo fees.

“You could person debased monthly condo fees and yet get deed pinch a typical assessment, wherever you’re going to salary a batch … aliases you could person precocious condo fees, wherever there’s tons of other money near successful the reserve fund.”

Gaidhar says the scenery surrounding condo fees shifted importantly successful Alberta erstwhile the provincial authorities introduced amendments to the Condominium Property Act much than a decade ago.

“They required (condo boards) to person a reserve fund,” Gaidhar explains. “Some of those aged buildings ne'er had a reserve money … truthful erstwhile those repairs are needed, who’s going to salary for them?”

Furuness says that acquisition varies drastically from building to building.

“I spot it successful newer ones, I spot it successful older ones … it really conscionable depends connected really (the condo board) is building up that reserve fund, and the activity that’s needed.”

In immoderate cases, condo buildings are facing interest increases successful the 10 per cent range. Coupled pinch aggregate typical assessments successful the span of respective years, that could costs the mean portion proprietor betwixt $3,000 and $4,000.

“We telephone it the ‘COVID catch-up,” Furuness says. “A batch of condos were having to hold activity … past we had the really large inflationary increase, which has been the large compression connected condos.”

Gaidhar says newer buildings typically travel pinch much amenities and that developers for illustration him are being other cautious erstwhile mounting the first condo fees for the first owners who move in.

“People utilized to look astatine condo fees and say, ‘The cheaper the better.’ Nowadays, that’s not really it is — they want to make judge it’s adequate. They understand the importance.”

“It’s the aforesaid point successful a single-family home. If your tile starts leaking and damaging your home, you’re going to salary for it successful the end,” Gaidhar says.

Ultimately, realtors for illustration Kaufman opportunity the condominium marketplace will stay a awesome stepping chromatic for first-time location buyers and suit the lifestyles of definite group from each walks of life.

“Condos aren’t simply a building. It’s really much an ownership style,” Kaufman says. “There’s decidedly a scope (of options) depending connected the client.”

All 3 experts work together that consciousness is simply a buyer’s champion friend.

“There are really reputable companies that negociate about buildings. It really depends connected a client’s consequence tolerance,” Kaufman says.

“The favourite words I get erstwhile I get compliments are, ‘I didn’t cognize that’ aliases ‘you saved america from getting into a condo we couldn’t afford.'”