Calgary’s Luxury Home Market Soars
In just the first six months of 2012, 301 homes have been sold in Calgary for over the $1 million mark, which is up a cool 19% from the first half of 2011. The demand for luxury real estate in Calgary is rising, with listings of 908 homes between January 1st, and June 30th, 2012, which is up from 474 homes in the same time period of 2011.
In a recent report, it was found that 6% of $1 million homes have sold for their asking price, and had an average of just 53 days on the market. If you compare the number of these luxury homes listed through the years, it is easy to see that 2012 is already way ahead of the pace. For example, in 2005, only 138 were listed, and by 2007 that number increased to 458. 2008-2010 saw decreases before 2011 where 446 million dollar homes were listed for sale. The trend continues upwards, which is a great sign for the real estate sector and the city in general.
There are a few factors that are driving the market, say the experts. One is that baby boomers are downsizing and possibly buying second properties, as they are older they know what they want in the areas they want and need areas that cater to all of their needs. There is also a renewed confidence with the professionals in the younger generation and greater confidence in the energy sector that has a ripple effect throughout other sectors as well.
Calgary’s luxury market, as well as that of the three other large cities in Canada: Montreal, Vancouver and Toronto have all enjoyed an upward trend in the first half of 2012. Compared to the first half of 2011, Vancouver is down 35% for this year, but Toronto has a 29% sales increase and Montreal boasts a 15% increase over the same time period in 2011. Listings are also up in all of the major centers.