Calgary’s housing market is booming! And while that’s good for builders and developers in the area, it might not bode so well for those currently looking for Calgary mortgages. One home just made history in the city when it sold for $6 million – $1 million over the home’s listing price.
The luxury home has everything you would expect in a multi-million dollar home: an elevator; over 10,000 square feet of development space; a loft; and a third-level observatory space. Located in Calgary’s high-end area of Britannia, it was a bidding war that pushed this home so well above its asking price on the final sale, and according to Bob Jablonski, president of the Calgary Real Estate Board, it’s only one of many signs of how well the Calgary housing market is doing, despite the fact that the local political picture isn’t so stable at the moment.
“This buyer bought it obviously before the provincial election results came out. So if you can imagine spending $6 million before the election comes out when supposedly everyone is worried about what’s going to happen. It shows great confidence by the consumer and he bought it in a neighbourhood that is well-established and a very desirable neighbourhood. So that tells me they’re OK with the world.”
Jablonski continued on to say that million-dollar homes in the city aren’t nothing new – although this particular one did have many raising their eyebrows. He pointed towards statistics though, that indicate the million-dollar housing market is doing very well in Calgary and continues to grow. Last year the city saw 136 sales that were over the $1 million asking price, while this year there were 148 in the same category.
Richard Cho, senior market analyst in Calgary for CMHC said there were several reasons for the increase in these pricey properties. “Resale activity in Calgary has been improving and is giving some existing homeowners an opportunity to sell their home and trade up into something larger,” he says. “Some prospective buyers have also benefited from higher wages, bonuses, and favourable mortgage rates, supporting demand for luxury homes.”
And it’s not just luxury homes in the area that are currently doing well. The average price of a Calgary home currently sits somewhere around $481,653. Those looking for something a bit cheaper may want to look a couple of hours North of the city, as Edmonton mortgages are well below that for this year, sitting at an average of $337,000.
