Go to Main Content

Advertisement

By Special to MoneySense on March 5, 2015
Estimated reading time: 2 minutes

It’s a buyers market for luxury homes in Calgary

By Special to MoneySense on March 5, 2015
Estimated reading time: 2 minutes

$1M+ homes in Toronto and Vancouver brush off oil slump

Advertisement

(Ivan Hunter/Getty Images)

TORONTO – Sotheby’s International Realty says a contraction in Alberta’s economy will cause sales of high-end homes in Calgary to slip this spring, creating opportunities for deal-hungry buyers. Meanwhile, sales of homes worth $1 million or more in Toronto and Vancouver are expected to accelerate heading in to the key spring selling season, thanks to the positive economic outlook for both regions. The realtor says the disparity stems from the fact that lower oil prices will have varying impacts on different provinces, with Ontario and British Columbia set to benefit and Alberta expected to suffer. Sotheby’s president and CEO Ross McCredie says that after five years of growth, sales in Calgary’s high-end real estate market are already beginning to slow. The average price of a high-end home in Calgary has come down about four per cent from 2014 highs. McCredie says buyers in the higher-end real estate market tend to react to economic changes more quickly than regular buyers. “They tend to be more tuned in to the news, they tend to be looking at the stock markets, and when their confidence goes— then the rest of the market starts to follow,” McCredie said. “I think the higher-end market starts to be a lead indicator as to what’s going to happen, potentially, in the general marketplace.” McCredie says the long-term impact of the decline in oil prices on Calgary’s high-end real estate market remains to be seen. However, he says vacancy rates in the city are at historic lows and unemployment in Alberta also remains low, at least for now. That should help to keep the high-end real estate market afloat in the short term. “The public perception is that everybody in Calgary turned the lights off and left, but that’s not the case,” McCredie said. “It’s not as dire as people are making it out to be.”

Comments Cancel reply

Related Articles

A man and woman consider paint chips in their new condo

How changes to the Home Buyers’ Plan could affect your down payment

How changes to the Home Buyers’ Plan could affect your down payment

A smiling young woman takes a selfie in her new home.

Unsure about buying a home? Why you should open an FHSA now anyway

Unsure about buying a home? Why you should open an FHSA now anyway

Canadian couple outside of home, wondering if they should transfer it to their corporation.

Is transferring your principal residence to your corporation a good idea?

Would swapping a house for cash from a corporation save on taxes? And is this tactic worth it in...

Is transferring your principal residence to your corporation a good idea?

Donald Trump is given a jacket by trader Peter Giacchi at the New York Stock Exchange,

5 things to watch in Canadian business in 2025

Here’s what to keep an eye on as we head into the new year, from the housing market and...

5 things to watch in Canadian business in 2025

A landlord meets with two potential tenants outside a condo building

Business Insurance

Insurance for landlords in Canada: Your guide to protecting rental properties

Insurance for landlords in Canada: Your guide to protecting rental properties

Photo of a holiday gift cut with scissors—symbolizing a December Bank of Canada rate cut.

Making sense of the Bank of Canada interest rate decision on December 11, 2024

Making sense of the Bank of Canada interest rate decision on December 11, 2024

A maintenance worker outside the Bank of Canada building on Wellington Street in Toronto

Bank of Canada lowers key interest rate by 0.5%

On Wednesday, the central bank announced a jumbo rate cut—its fifth cut in a row since June—and signalled a...

Bank of Canada lowers key interest rate by 0.5%

woman works on laptop December indoor scene

Year-end tax-saving tips for Canadians for 2024

Tax planning in Canada isn’t just for March and April. These smart tax moves need to be made before...

Year-end tax-saving tips for Canadians for 2024

Why Canadian consumer debt continues to grow

Consumer debt reached a record $2.5 trillion last quarter. Find out what’s driving increased debt levels among certain groups...

Why Canadian consumer debt continues to grow

MoneySense at the MoneyShow: ETFs & Investing Strategies

Here’s how to get your free ticket to attend the MoneyShow virtual expo.

MoneySense at the MoneyShow: ETFs & Investing Strategies