Calgary is making waves as Canada’s top luxury real estate market in 2024! 🏠✨ With a 46% increase in high-end home sales, it's clear the city is the place to be. Discover why Calgary is leading the way. #Calgary #Alberta
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Calgary: Canada's Hottest Luxury Real Estate Market in 2024
Introduction
Calgary has emerged as Canada's top luxury real estate market in 2024, leading the nation in sales growth for high-end homes. A recent report by Sotheby’s International Realty Canada highlights the significant year-over-year increase in luxury home resales in the city, fueled by factors such as strong interprovincial migration, a booming local economy, and the exceptional value offered by Calgary's housing market. This blog post delves into the key insights from the report, analyzing the factors driving Calgary's luxury real estate boom and offering a broader perspective on what this means for the city's future.
A Surge in Luxury Home Sales
According to the Sotheby’s International Realty Canada’s Top-Tier Real Estate: 2024 Mid-Year State of Luxury Report, Calgary saw a 46% increase in sales of homes priced at $1 million or more in the first half of 2024 compared to the same period in the previous year. This remarkable growth outpaced other major Canadian cities, highlighting Calgary’s rising appeal as a luxury real estate destination.
Key Drivers:
Interprovincial Migration: Calgary's strong population growth is a major driver of demand in the luxury market. In 2023, the city recorded the highest population increase in Canada, with a 5.9% growth rate, according to Statistics Canada. This influx of new residents, many of whom are relocating from larger cities like Toronto and Vancouver, is contributing to the surge in high-end home sales.
Affordability and Value: For many buyers, Calgary offers unparalleled value. While luxury homes in Toronto and Vancouver start at $4 million, Calgary’s luxury market is much more accessible. With prices for high-end homes often falling between $1 million and $2 million, buyers can get more for their money, allowing them to purchase properties that would be out of reach in other major cities.
The Breakdown: What’s Selling in Calgary’s Luxury Market?
The majority of luxury sales in Calgary are happening within the $1 million to $2 million price range, accounting for 91% of all sales in this segment during the first half of 2024. Single-family detached homes are the dominant force in this market, representing 81% of luxury sales. However, there is also notable growth in other types of housing:
Attached Homes: Sales in this category have seen a staggering 133% year-over-year increase, with 149 properties sold from January to June 2024.
Luxury Condos: Although the ultra-luxury condo market (homes priced over $2 million) has seen a decline in resales, there is a shift towards new developments. Many buyers, particularly those downsizing, are opting for newly built luxury condos instead of resales.
Why Calgary? The Pull of Canada’s Most Affordable Luxury Market
Calgary's luxury real estate market is thriving not just because of the city’s economic stability and migration trends, but also due to its relative affordability compared to other Canadian cities. The average home prices in Toronto and Vancouver far exceed $1 million, making Calgary’s luxury offerings incredibly attractive. This price differential means that many buyers, especially those coming from British Columbia and Ontario, can afford to enter Calgary's luxury market and purchase high-end properties they could only dream of in their home provinces.
Anecdotal Evidence:
- A realtor with Coldwell Banker Mountain Central – The Starnes Group, Rachelle Starnes, notes that many clients relocating to Calgary are surprised at how far their money can go. Whether they're moving from Toronto, Vancouver, or smaller communities, these buyers find themselves able to purchase luxury homes at prices much lower than what they’d expect in larger cities.
The Future of Calgary’s Luxury Market
As Calgary continues to attract new residents and grow its population, the demand for luxury homes is likely to remain strong. The city's economic resilience, coupled with its appeal as a more affordable alternative to Toronto and Vancouver, positions it well for sustained growth in the luxury real estate sector.
However, the market isn't without its challenges. The decline in ultra-luxury condo resales suggests a shift in buyer preferences, potentially signaling a future trend towards newer, more modern developments. Additionally, as more people move to Calgary, there may be upward pressure on prices, which could start to erode some of the affordability that currently makes the city so attractive.
Actionable Takeaways
For potential buyers and real estate investors:
Consider Calgary if you’re looking for luxury real estate that offers excellent value for money. The city’s market is currently more affordable than other major Canadian cities, and the potential for future appreciation is strong.
Look Beyond Single-Family Homes: While single-family detached homes dominate the market, the significant growth in attached homes suggests there are opportunities in this segment as well.
Watch the Condo Market: With a shift towards new developments, there may be future opportunities in the luxury condo sector, particularly as more high-end projects come to market.
Conclusion
Calgary's luxury real estate market is experiencing a boom, driven by strong migration, economic strength, and affordability. For those considering entering this market, now may be an opportune time to invest in a city that is rapidly becoming Canada's top destination for luxury living. As the market continues to evolve, keeping an eye on trends in both single-family homes and condos will be key to making informed decisions. Whether you're a buyer or investor, Calgary's luxury market offers a promising landscape with potential for growth and long-term value.