Real estate trends can sometimes be unpredictable. In Calgary, an increase in the sale of luxury residential real estate has caught local professionals and investors by surprise. In fact, the growth of sales in million-dollar-plus home sales in the Alberta city may be track to surpass Toronto and Vancouver in terms of growth.
According to a recent report, sales of luxury homes were up 45 percent in Jan. and Feb. 2018 compared to the same time last year. A luxury home was defined as residential real estate priced over $1 million. The report says that most of the homes being purchased are detached houses between one and $2 million.
As with any pattern in the real estate market, there are several reasons for this shift. Experts suggest that these causes include job gains, Alberta's GDP growth and an increase in inventory creating a "buyer's market" that has forced lower prices. While sales of luxury homes are up substantially in Alberta, other types of real estate are seeing the opposite pattern. The condominium market, for example, does not appear to have recovered from Alberta's economic downturn.
Residential real estate trends can surprise even the most seasoned experts, but often they can be explained with a close look at the local economy and the people who are buying and selling the homes. Those who are looking to either purchase or sell a home in Alberta should make sure their purchase is secure and legally binding under provincial and federal law. A local real estate lawyer is an important resource for this process.
Source: CBC News, "Calgary's luxury home market may be poised to grow faster than Toronto, Vancouver", Sarah Rieger, March 22, 2018