Baseline entry point is $2M for upscale residence
By Mario Toneguzzi
Calgary Herald April 22, 2013
Calgary is one of Canada's most robust markets for luxury homes, says a report by Sotheby's International Realty Canada.
The baseline entry point for a luxury single-family home in Calgary is $2 million - in line with the Toronto market - says Sotheby's Top Tier Trends Report.
As Calgary's market for top-tier homes continues to outpace most of Canada, Sotheby's survey findings reveal demand is predominantly driven by younger buyers, age 35 to 40, who have a skew in preference toward inner-city and Beltline living.
The report lists the most desirable neighbourhoods as Mount Royal, Brittania, Bel-Aire, Aspen, Springbank Hill, Elbow Park/Elbow Valley, and Inner City Southwest/ Westside
"According to agents surveyed, top-tier single-family homes start at $2 million dollars with a minimum of 3,500 square feet," the report states. "According to experts surveyed, over 80 per cent of these homebuyers earn an income of $500,000 or higher.
"They are predominantly employed within the finance and investment banking (mining, oil and gas) or medical sectors, or are entrepreneurs," the report continues.
According to the survey, 85 per cent of luxury home purchases in Calgary are made by Canadians - the highest rate among the markets Sotheby's surveyed.
"According to agents surveyed, top-tier single-family homes start at $2 million dollars with a minimum of 3,500 square feet," said the report. "'Must-have' features include access to schools and shopping, views of downtown, park, river or mountains," the report says.
"Most buyers own multiple homes and mortgages are commonly used within this segment of the market."
According to the Calgary Real Estate Board, there have been 204 MLS sales over $1 million in Calgary this year to April 17.
The city set a record for luxury home sales during 2012, with 544 sales. The previous record was 458, set in 2007.
Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp., said that demand for luxury homes has been robust.
"Low mortgage rates combined with a healthy selection of higher-priced homes have also helped luxury homebuyers."
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