Sotheby’s International Realty Canada says it’s expecting a buyers’ market for luxury homes in Calgary in the first quarter of 2017 following a lift in sales last year.
After declining 40 per cent year-over-year in 2015 due to the sudden plunge in oil prices, sales of homes worth $1 million or more rose 19 per cent, to 612 properties, in 2016.
The realtor released a report Wednesday that looked at sales of homes for more than $1 million in Calgary and three other cities — Toronto, Montreal and Vancouver.
It said high-end sales activity in Calgary stabilized last year as prices better aligned with buyers’ conditions. Sales of $1 million-plus single-family homes grew 22 per cent year-over-year to 548 properties. Nineteen luxury condo units sold for $1 million or more.
Toronto is poised to lead the country in high-end home sales for a third consecutive year, Sotheby’s Canada said.
It concluded 19,692 such properties were sold last year in the Greater Toronto Area — an increase of 77 per cent compared to 2015. Sales of homes worth more than $4 million in the GTA rose 95 per cent year-over-year to 290 properties.
In Vancouver, high-end home sales started off strong but slowed in the second half of the year as a number of government policy changes took effect. They included a one-per-cent tax on vacant homes implemented by the City of Vancouver and the B.C. government’s 15 per cent tax on foreigners buying homes in Metro Vancouver.
Those changes amplified a cooling in the Vancouver real estate market that started over the summer, Sotheby’s said.
Sales in Vancouver’s $1 million-plus market were down 34 per cent year-over-year in the second half of the year compared to the same period in 2015. But on an annual basis, sales of Vancouver homes worth $1 million or more were relatively flat last year, down one per cent year-over-year to 4,515 properties.
Luxury home sales were up 36 per cent year-over-year in the city, with 573 properties priced at more than $4 million trading hands.
The realtor says global turmoil — including Britain’s vote to exit the European Union and Donald Trump’s election win in the U.S. — injected uncertainty into global real estate markets last year.
Canada, which is regarded as a haven, has a low dollar and a strong real estate market, making it a desirable destination for real estate investment and immigration, the report said.
– Calgary Herald