Calgary’s luxury home market has seen a spike in demand this year with sales in the upper-end approaching the record levels of 2007.
Brendan Hughes, a realtor with RE/MAX Real Estate (Central) in Calgary, said sales in the upper-end market are a sign of a good economy in the city.
“It’s vibrant and it’s growing. Jobs are being created. People are moving here,” said Hughes.
According to the Calgary Real Estate Board, so far this year from January to November there have been 25 MLS condo sales over $1 million compared with 19 for the same period in 2010.
Year-to-date, there have been 406 single-family sales at that price point, up from 326 a year ago.
The record number of luxury home sales in the Calgary market took place in 2007 with 431 single-family sales over $1 million and 30 condo sales in that price bracket.
Sano Stante, president of the Calgary Real Estate Board, said there is a lot of confidence in the local real estate market these days.
He said many oilpatch executives are showing confidence because of what they see coming up for the future with projects in the energy sector.
“Those are the people that are buying these properties. So there’s confidence in that realm,” said Stante.
“There’s a fair bit of inventory out there available in that upper range as well. The people who are buying them now are being selective in the upper-end, in the luxury market. There’s a lot of good product to choose from and they’re selecting only the best deals. So homes in the luxury range have to be priced right to sell in a reasonable amount of time.”
According to CREB, the top sale prices for single-family homes in Calgary this year have been $4.525 million in Rideau Park, $3.995 million in Elbow Park-Glencoe and $3.8 million in Aspen Woods.
Top selling condos this year have been $4.1 million in Eau Claire, $2.935 million in Eau Claire and $2.05 million in Victoria Park.
Hughes said one factor in the demand for upper-end product is executives who have been relocated to Calgary.
“They like the high-end condo market,” said Hughes. “We’re also seeing these young professionals — the investment bankers, the lawyers, whatever they might be doing — they work really hard … They’re looking at that high end.
“And then there’s that investment side of it too. Some people shudder when you mention a million-dollar condo but compared to a lot of other markets what you get here for $1 million, $2 million, is a lot more than you’re getting in some of the other markets. And people see that.”
Hughes said there are people who are also buying these upper-end condos and renting them out to executives in the oilpatch.
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