Luxury home sales surge illustrates high consumer confidence in Calgary

This southwest Calgary home, which features four bedrooms and four bathrooms, is listed at $2,980,000. (Supplied/Sotheby's International Realty Canada)

More than 420 homes, priced at over $1 million, sold in the city of Calgary during the first few months of the year, representing a huge surge over last year.

The post-pandemic data, from Sotheby's International Realty, suggests that "buoyant consumer optimism" as well as a strong local economy contributed to the increased sales between January and March.

Calgary also took advantage of strong "seller's market" conditions, the group says.

"A booming energy sector, rapidly diversifying economy, employment gains and favourable interest rates continued to stoke real estate consumer confidence and activity in the City of Calgary’s conventional and luxury real estate market in the preliminary months of 2022, foreshadowing an active spring market ahead," Sotheby's wrote in its Spring 2022 State of Luxury Report.

Sotheby's says while the Calgary Real Estate Board reported its own surge in sales, the city's luxury market also experienced a lot of activity.

"Residential real estate sales over $1 million (condominiums, attached, and single family homes), surged 82 per cent year-over-year, with a total of 427 homes sold from January 1 to March 31," the report said.

While there were no homes sold in the $10 million-plus bracket so far this year, Sotheby's says two homes, which were listed above $4 million, were sold.

However, any luxury homeowners looking to sell this spring, such as the owner of this southwest Calgary property, should consider a number of things to "avoid listing stagnation", Sotheby's says.

"While days on market diminished for top-tier properties overall, and well-priced premier luxury homes in sought-out neighbourhoods saw bidding wars, Sotheby’s International Realty Canada market experts caution that given the city’s sufficient supply of listings over $1 million, luxury property pricing strategies should reflect hyperlocal and current market conditions to attract qualified buyers."

The sales of attached homes priced at more than $1 million also surged this year, with 43 sales reported in the first three months – a 258 per cent year-over-year increase.

Growth is slower in Calgary's luxury condominium market, Sotheby's says, which is continuing to be weighed down by the slow recovery of the downtown core.

"Seven properties sold over $1 million, compared to two properties sold in the same period of 2021. There were no sales yet reported over $4 million, on par with 2021."

(Supplied/Sotheby's International Realty Canada)

That is expected to improve throughout the rest of the year, the organization says, as Calgary is gaining its footing "as a destination for young talent and new business investment."

"According to Sotheby’s International Realty Canada experts, the city has seen a marked increase in out-of-province top-tier real estate inquiries throughout the first quarter of 2022 from across Canada and notably Ontario, as well as the United States. There has also been an uptick in enquiries from mainland China."