How high is up in Calgary’s luxury home market?
A ceiling for sales was set in 2012, but sales in 2013 blew the doors off that record, says ReMax in its Upper-end Market Trends report. Seven hundred and thirty-two properties, priced at more than $1 million, changed hands in 2013, a 34% increase over 2012 levels, says the report.
“In fact, Calgary has been on a consistent upward trajectory, with the number of luxury home sales more than doubling over the past five years. Year-over-year, the condominium sector demonstrated even greater strength than the overall market, with sales rising a substantial 88% over 2012 levels (68 units vs. 36 units).
The momentum has brought the market into balanced territory, with close to 350 properties now listed for sale over $1 million, roughly a six-month supply.
“Along with traditionally popular, older, established inner-core areas, newer areas such as Aspen are drawing purchasers.”
Calgary wasn’t the only city to see increases in luxury sales, says the report, with more than two-thirds of markets setting new records for high-end sales in 2013.
In addition to Calgary, those markets included St. John’s, Quebec City, Greater Toronto, Hamilton-Burlington, Kitchener-Waterloo, London- St. Thomas, Winnipeg, Regina, Saskatoon and Edmonton.
“Canada’s luxury market is rising to an entirely unprecedented level,” says Elton Ash, regional executive vice-president, ReMAX of Western Canada. “As appetites for upper-end properties have increased, so too have expectations.”
“Properties are setting a new standard. Condos are no exception, with some now equalling their single-family counterparts in lavish amenities and values.”
In Calgary, the hot infill construction segment is driving up values in communities on the peripheral of the city’s blue chip areas, in areas such as Inglewood, Montgomery and the southwest quadrant.
“Strong confidence, based on sound economic fundamentals, is behind the growth in upper-end sales, along with steady trade-up activity, bolstered by equity gains, incomes, in-migration and immigration,” says the report.
“The highest-priced property to change hands in the city set a new record in 2013. The $11.1 million home in Crescent Heights, located on an exclusive point on the ridge, offered a spectacular view of the downtown core.”
“Currently, the most expensive homes on the market include a 10,000-sq.-ft. estate in Pumphill, listed for nearly $8.7 million, and a 5,000-sq.-ft. condo, with views of the downtown and river, listed just shy of $8 million.
“The most active price range, however, remains $1 million to $2.5 million, although 15 sales were recorded over the $3 million mark in 2013 and two transactions moved over $10 million.”
Was the ceiling for luxury home sales set in 2013 in Calgary?
Maybe. Maybe not.
“With solid confidence in place, Calgary is expected to mirror 2013’s stellar performance, with the luxury market proving strong and steady,” says the report. “Another record year is possible, particularly with the optimism that’s now building.”