Calgary luxury real estate market soared 222% last year

Jan 12 2022, 7:35 pm

The Calgary real estate market soared sky-high in 2021, and the luxury market was no exception to that.

In fact, according to a new report from Sotheby’s International Realty Canada, the number of luxury properties sold for over $1 million in Calgary shot up a whopping 222% compared to 2020, with a staggering 1,101 properties changing hands.

“Canada’s real estate market was redefined in 2021,” said Don Kottick, President and CEO of Sotheby’s International Realty Canada. “There has been a transformative change in Canadians’ perceptions of the importance of their homes as an investment in lifestyle and pleasure, physical sanctuary and security, as well as financial stability and generational wealth.”

The Calgary Real Estate Board reported earlier this month that the average selling price in the city for the entire year of 2021 came out to $451,567 — rising by more than 8% and coming in just short of the annual record high set back in 2015. Calgary home sales reached 27,686 units last year, nearly 72% higher than 2020 and over 44% more than the 10-year average.

And the surge didn’t stop when it came to ultra-luxury properties either. Homes over $4 million accounted for four Calgary property sales reported in 2021 — which doesn’t sound like many, but that’s double the number of ultra-luxury homes sold in this price category in 2020.

Single-family home sales made up 92% of $1 million-plus real estate transactions in Calgary last year; however, these gains were seen across every type of housing. Attached home sales over $1 million were up 244% year-over-year. Condos saw the most significant annual percentage gain of any luxury housing type, with sales over $1 million up a jaw-dropping 267%.

Calgary is home to some of Canada’s most affordable prices for conventional and luxury properties. Another recent report by Sotheby’s on generation trends showed that Calgary is not only retaining young locals with affordable housing options, it is also attracting young first-time homebuyers and up-sizers from other major Canadian cities who are looking for better living standards and top-tier homes at accessible prices.

“Local demand was the principal driver of Canada’s luxury and conventional housing market in 2021, as low-interest rates, record cash savings and underlying anxiety regarding future stock market performance continue to encourage diversification into real estate,” the report reads.

“A gradual increase in international enquiries on luxury properties through the year reflect an ongoing build-up in demand from expatriates, new Canadians and permanent residents that will flow into the market as travel restrictions gradually ease.”

With files from Laura Hanrahan

Elle McLeanElle McLean

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