Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Montreal and Victoria in the first seven months of the year. Calgary was the exception; sales in the $1 million range decreased 28 per cent over the same period in 2014.
In Calgary, a healthy 2.3 to 2.5 months’ supply of inventory in the $1 million plus range has brought a more balanced market to the city. Luxury buyers are not witnessing a notable decrease in price; however, there is less pressure for buyers during the negotiation process. With more inventory available, conditions like home inspection and financing, which were rarer when buyers were frequently in a competing offer situation, have become part of the normal negotiation process again.
Sales of properties over $1 million decreased 28 per cent yearover- year, as the city felt the impact of falling oil prices. While sales are down and listings are up compared to the same period last year, properties have tended to hold their price and a healthy
2.3 to 2.5 months’ supply of inventory has resulted in a more balanced market. With more inventory available, conditions like home inspection and conditional upon financing, which were rarer when buyers were frequently in a competing offer situation, have become part of the negotiation process again.
The demographic of the typical luxury buyer in Calgary has shifted over the past several months. Once driven by younger couples, often first-time homebuyers employed in the oil industry, the typical luxury buyers in today’s market are families who are moving up from their previous home. A trend in Calgary’s luxury market is for buyers to purchase properties near the city’s core and then hire a builder to tear down and construct a new home. Unlike spec homes, this allows the homeowner more control over the design and location of their house. Areas like Altadore, Kensington, Mount Royal and Elboya are popular for this practice; these neighbourhoods have fairly large lots yet are a walk or short drive from Calgary’s downtown core. Another popular area is Lake Bonavista, which also has large lots and many popular amenities for families.
Source: RE/MAX 2015 SPOTLIGHT ON LUXURY REMAX.ca