Luxury Home Market Sees Increased Activity Year-over-Year
The performance of Calgary’s luxury home market in 2016 is a prime example of how each residential sector has reacted differently to the times.
For example, the number of million dollar listings that have sold in the Calgary Metropolitan Area (CMA) year-to-date has grown by 30 percent over the previous year.
That amounted to 428 total sales at the end of August, up from 329 sales over the same time frame in 2015.
To put things into perspective, these luxury sales account for about 3 percent of the nearly 14,000 homes that exchanged hands between the same period of time.
The sales volumes may be small, but it’s definitely a good sign as it represents a small comeback for the luxury home sector after the price of oil dropped in 2014 which in turn took its toll on the energy sector.
In 2014, January to August million dollar listing sales totaled 606 which dropped nearly 46 percent to 329 the following year. Also see month-to-month Calgary Real Estate Market Updates here.
This comeback can partially be contributed to the fact that Calgary’s housing sector is currently deep into buyers territory.
Many homes above the $1 million price point are being listed and sold for many tens, if not hundreds of thousands of dollars lower than their property-tax assessed values.
For example, one home was bank-appraised / tax-assessed at $2.15 million and is currently selling for $1.9 million on the MLS®. Another one that sold for $2.3 million a few years back sold just recently for just below $1.8 million.
This of course has generated more interest in the luxury home segment from buyers who may not have thought about making such a large purchase until seeing these price adjustments.
The majority of luxury home sales (over 200) thus far in 2016 have been in the city centre as price declines were the steepest in this region.
Calgary’s upscale and highly desirable westside area accounted for a fair share of its own (100 sales), with the rest of the million dollar sales being scattered around in the south, southeast and northwest sectors.
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