Over the past 12 months, the median price of a luxury house in Calgary dipped modestly by 0.8 per cent year-over-year to $1,950,591, while the median price of a luxury apartment-style condominium decreased two per cent to $887,011, according to a report released Tuesday by Royal LePage Canada.
“We are seeing buyers who were priced out of the luxury market in previous years buy their dream home,” said John Hripko, agent, Royal LePage Benchmark, in a news release. “Luxury home owners are also taking this opportunity to move up in the segment. The opportunity for those trading up within the luxury segment is unprecedented.”
The report said inventory for luxury property is not appreciably increasing and sales during the 12-month period are steady compared to the year prior. Also, luxury properties closer to city-centre have been more resilient at holding their value.
“Sellers are reluctant to put their properties on the market and sell at a loss,” said Hripko. “The collective impact of this trend has minimized price decline.”
Over the next year, the Royal LePage report said Calgary’s luxury house prices are expected to be relatively flat. The median price of a luxury house is expected to decrease by 0.5 per cent to $1,941,000 while the median price of luxury condominium is forecast to decrease 3.0 per cent to $860,000.
The report said luxury home prices are on the rise in the greater regions of Montreal, Toronto and Ottawa after posting gains during the 12-month period ending January 31. In Toronto and Montreal, limited inventory in high demand areas was a significant factor in home price appreciation. Contributing to low inventory is the lack of confidence among potential move-up buyers that they will find a suitable listing if they sell their current property, it said.
“Luxury condominiums in Toronto saw significant price appreciation as the region’s international reputation continues to grow,” said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Ltd. “Demand has remained healthy for luxury houses in Toronto and Ottawa, however, Montreal’s detached luxury home market continues to show significant upward price momentum.
“We are seeing encouraging signs that Vancouver’s luxury market is stabilizing. While no near-term price increases are expected in Vancouver and Calgary’s luxury markets, buyers and sellers are increasingly more confident that the market is stable.”
