Calgary luxury home market soaring
Sales up 67 per cent from last year in first half of 2013
CALGARY — Calgary has led Canada’s upper-end real estate market in nearly every category throughout this year, according to a report released Tuesday by Sotheby’s International Realty Canada.
“Calgary ended the summer with a strong finish and experts predict sales momentum to continue into fall, as resale and rental inventory remains tight,” it said. “Strong employment and migration numbers reflecting the city’s continued economic health will drive demand — it is estimated that for every 300 square feet of new office space created, an additional person is added to downtown Calgary.
“The high number of executive level jobs created will continue to fuel demand for top-tier real estate specifically, as newcomers take advantage of the city’s relatively affordable real estate market to buy up. In spite of the floods experienced by the city this summer, there is not enough data to date to show any long-term impact on the housing market, particularly in the high-end.”
According to the Calgary Real Estate Board, year-to-date up to and including Monday, there have been 543 MLS sales in the city for $1 million or more, just one off the all-time record of 544 set for the entire year in 2012.
This year’s pace of sales is way ahead of a year ago when 375 luxury homes sold in the same year-to-date time period.
The Sotheby’s report, which analyzed Canada’s largest metropolitan markets, said the high-end real estate market will gain momentum in the fall.
In the first half of the year, sales were up 65 per cent in Vancouver, 67 per cent in Calgary, 61 per cent in Toronto and 29 per cent in Montreal in the single-family home category.
“In examining the performance of the high-end market, we feel confident that Canada’s largest urban centres remain in exceptional positions heading into fall, with healthy market fundamentals from coast to coast,” said Ross McCredie, president and chief executive of Sotheby’s International Realty Canada.
The influence of international buyers in the high end will continue to increase in Toronto, Montreal, Vancouver and Calgary, said the report. The strongest foreign buying influences include China, Russia, the Middle East, India and the United States.
McCredie said there is strong confidence in Calgary and in Alberta.
“It continues to see more diversity. It’s not simply oil and gas. There’s so many other businesses emerging in that marketplace,” said McCredie. “It’s becoming a much more significant buyer base. Typically, Calgary, and in particular Alberta, has really resulted from one industry being healthy or not being healthy. I think right now people are seeing Alberta as being more diverse.
“Very wealthy individuals see real estate as a great hedge against inflation.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
“Calgary ended the summer with a strong finish and experts predict sales momentum to continue into fall, as resale and rental inventory remains tight,” it said. “Strong employment and migration numbers reflecting the city’s continued economic health will drive demand — it is estimated that for every 300 square feet of new office space created, an additional person is added to downtown Calgary.
“The high number of executive level jobs created will continue to fuel demand for top-tier real estate specifically, as newcomers take advantage of the city’s relatively affordable real estate market to buy up. In spite of the floods experienced by the city this summer, there is not enough data to date to show any long-term impact on the housing market, particularly in the high-end.”
According to the Calgary Real Estate Board, year-to-date up to and including Monday, there have been 543 MLS sales in the city for $1 million or more, just one off the all-time record of 544 set for the entire year in 2012.
This year’s pace of sales is way ahead of a year ago when 375 luxury homes sold in the same year-to-date time period.
The Sotheby’s report, which analyzed Canada’s largest metropolitan markets, said the high-end real estate market will gain momentum in the fall.
In the first half of the year, sales were up 65 per cent in Vancouver, 67 per cent in Calgary, 61 per cent in Toronto and 29 per cent in Montreal in the single-family home category.
“In examining the performance of the high-end market, we feel confident that Canada’s largest urban centres remain in exceptional positions heading into fall, with healthy market fundamentals from coast to coast,” said Ross McCredie, president and chief executive of Sotheby’s International Realty Canada.
The influence of international buyers in the high end will continue to increase in Toronto, Montreal, Vancouver and Calgary, said the report. The strongest foreign buying influences include China, Russia, the Middle East, India and the United States.
McCredie said there is strong confidence in Calgary and in Alberta.
“It continues to see more diversity. It’s not simply oil and gas. There’s so many other businesses emerging in that marketplace,” said McCredie. “It’s becoming a much more significant buyer base. Typically, Calgary, and in particular Alberta, has really resulted from one industry being healthy or not being healthy. I think right now people are seeing Alberta as being more diverse.
“Very wealthy individuals see real estate as a great hedge against inflation.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
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