Sales in the luxury real estate market in Calgary continues to recover, with activity rising by 45 per cent year-over-year in homes priced over $1 million for the first two months of this year, says a report released Wednesday by Sotheby’s International Realty Canada.
Brad Henderson, President & CEO of Sotheby’s International Realty Canada, said Calgary is expected to see an uptick in high-end sales activity as homebuyers and sellers emerge from a prolonged stalemate over pricing expectations to re-engage in the current market reality.
The resurgence of Alberta’s economy is contributing to new activity in Calgary’s top-tier real estate market, even as lingering effects of the downturn suppress prices and prolong the recovery period, said the Sotheby’s report
“Top-tier sales in the first two months of 2018 reflected the recuperation of consumer psychology, an increased willingness of home sellers to adjust pricing to meet market realities, as well as buyers’ readiness to act,” said the real estate firm. “Sales of real estate over $1 million (condominiums, attached and single family homes) were up 45 per cent year-over-year to 94 units, with over 90 per cent of these sold in the $1–2 million range. Detached home sales over $1 million, which comprised 82 per cent of the $1 million-plus residential properties sold over the period, saw a 33 per cent year-over-year increase to 77 units sold. Eight attached homes sold over $1 million in the first two months of 2018, up from five during the same period in 2017.
“As activity rebounds, high inventory levels, slow absorption rates and price adjustments are projected to continue into spring 2018. Challenges in Calgary’s luxury condo market are also expected to remain pronounced: nine condos sold over $1 million in the first two months of 2018, a marginal uptick from the two sold in January and February 2017. Demand for condominiums is expected to remain soft, even as new inventory enters the spring market.”
Sotheby’s said an active buyers’ market is projected for Calgary’s top-tier spring market, offering buyers ample opportunities to negotiate purchases as the city continues along its road of recovery.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.
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