As economic slump drags on, the number of million-dollar-plus Calgary homes dwindles

Saturday, January 16, 2021   /   by Sergey Korostensky

As economic slump drags on, the number of million-dollar-plus Calgary homes dwindles

Calgary Herald

While Calgary’s inventory of luxury homes includes one assessed at more than $17 million, the number of properties worth $1 million and up in the city continues to shrink.

The six-year economic slump deepened by the pandemic has seen the listing of those luxury homes fall by 14 per cent over the past two years, to 12,240 this year from 14,218 in 2019.

Over the past year, the number of those assessments fell by four per cent.

That hasn’t severely decimated the prices of many higher-end addresses, with the priciest residence, one in Upper Mount Royal, assessed by the city at $17.3 million.

Coming in second is a Pump Hill home at just under $17 million, followed by a residence in Aspen Woods assessed at $8.25 million.

Twin condo penthouse apartments in the Beltline round out the top five at $8,170,000.

But while the number of assessed properties in the city has increased by two per cent over the past year, there’s no doubt economic pressures have pushed down the inventory of the highest-priced homes.

For the past six years, those prices have been continually coming down, if you’re looking at some higher-end, there’s definitely some good deals compared to 2014, which was the peak of the market here.

The value of the city’s priciest addresses has fallen about 10 per cent over the past few years, she said, but the demand for them never goes away.

You still have people who can afford a million-dollar-plus home. It doesn’t matter what the market is, there’s always those people, adding 300 of those properties are currently on the market.

In the past year, 498 homes in Calgary fetched more than $1 million, with the average price of those at $1,448,667

Recently, two homes sold for around $4 million, one of them going for $500,000 below its appraised value...

People are cautious. It takes a lot for them to pull the trigger. They’re looking at some pretty good opportunities and throwing out some pretty low price points. Even so, that market and the wider one have been kept afloat at a reasonably healthy level by incredibly low interest rates.

On Thursday, the city released its property assessment rolls that suggest residential values have fallen by two per cent since the previous year, based on a July 1, 2020, review.

The median assessment for a detached home fell to $445,000 from $455,000 over the past year.

A Royal LePage survey released Friday says the Calgary market remains stable, with the aggregate price of a home in Calgary dipping by 0.5 per cent in the fourth quarter of 2020 compared to the same period in 2019.

“Calgary remains an attractive place to purchase a home, partly due to its affordability relative to other major cities in Western Canada,” said Corinne Lyall, broker and owner, Royal LePage Benchmark.