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Real eState
Calgary’s ultra-luxury real estate heats up
Ultra-luxury homes in Calgary may not be selling like hotcakes, but homes priced $4 million or more are seeing higher demand than ever before, says a local realtor, specializing in the niche resale real estate segment.
“This spring, Calgary has seen multiple ultra luxury sales over the $4-million mark, compared with last spring,” says Corinne Poffenroth, senior vice-president of sales with Sotheby’s International Realty in Calgary.
She points to one sale in late April in Upper Mount Royal for more than $5 million among a handful of ultra-luxury home transactions that are becoming more common, though still far from the norm in Calgary. The recently published Top-Tier Real Estate: Spring 2024 State of Luxury Report, by Sotheby’s International Realty Canada, reveals that Canada’s luxury market is recovering after the recent slump in activity in many major centres, resulting from higher borrowing costs.
It also highlights Calgary as a luxury market outlier with higher demand than other large cities, further adding the city should continue to lead Canada for percentage sales growth of high-priced homes.
“One big reason is Calgary is attracting a lot of new businesses right now,” says Don Kottick, president and chief executive officer of Sotheby’s International Realty Canada.
What’s more, Calgary is a value market for luxury, unlike Vancouver and Toronto where luxury starts at $4 million. In Calgary, by comparison, luxury starts at $1 million.
Yet luxury is a moving target in Calgary these days — upward in price, that is — given that the average price for a single-family detached home in the city exceeded $800,000 at the end of March, Calgary Real Estate Board statistics show.
Most luxury demand in Calgary is for single-family homes “accounting for 83 per cent of sales for homes priced at $1 million-plus,” Poffenroth says.
Yet ultra-luxury — $4-million-plus — in Calgary, often a slow market, has picked up, as noted in Sotheby’s report.
It points to two luxury properties worth more than $4 million selling in the first three months of the year versus none in the same period in 2023.
The market for luxury homes under that price, however, was much more active. All told, 441 sales over $1 million occurred in the first quarter of this year, an increase of 63 per cent year over year, the report states.
The vast majority of sales are in the $1-million to $2-million range, accounting for 92 per cent of luxury activity in Calgary.
While many of these transactions involve single-family detached homes, other luxury housing types — townhomes and condominium apartments — are seeing stronger demand than seen in the previous 10 years, Poffenroth says, pointing to recent sales for $1.5 million and $3 million for apartment condominiums downtown.
CREB statistics from the first quarter of 2024 reveal 15 apartment sales of $1 million or more versus 10 in 2023, also a strong market historically. Row sales did fall from four to three sales year over year, ending March 31, but semi-detached transactions in that price range were up sharply from three last year to nine this year.
Kottick says the report forecasts improving demand for Canada’s luxury market, especially if interest rates fall, with Calgary expected to again be a luxury activity leader.
“The city is still booming economically, and that will certainly drive luxury sales.”
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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.
The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.
The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.
“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.
“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”
The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.
New listings last month totalled 15,328, up 4.3 per cent from a year earlier.
In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.
The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.
“I thought they’d be up for sure, but not necessarily that much,” said Forbes.
“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”
He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.
“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.
“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”
All property types saw more sales in October compared with a year ago throughout the GTA.
Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.
“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.
“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”
This report by The Canadian Press was first published Nov. 6, 2024.
The Canadian Press. All rights reserved.
HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.
Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.
Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.
The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.
Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.
They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.
The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.
This report by The Canadian Press was first published Oct. 24, 2024.
The Canadian Press. All rights reserved.
Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.
Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.
Average residential home price in B.C.: $938,500
Average price in greater Vancouver (2024 year to date): $1,304,438
Average price in greater Victoria (2024 year to date): $979,103
Average price in the Okanagan (2024 year to date): $748,015
Average two-bedroom purpose-built rental in Vancouver: $2,181
Average two-bedroom purpose-built rental in Victoria: $1,839
Average two-bedroom purpose-built rental in Canada: $1,359
Rental vacancy rate in Vancouver: 0.9 per cent
How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent
This report by The Canadian Press was first published Oct. 17, 2024.
The Canadian Press. All rights reserved.
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