The Calgary top-tier property market in Canada is struggling and still awaiting signs of a recovery according to the latest Sotheby’s International Realty spring outlook.
As inventory in the $1-million-plus top-tier category has increased, sales have declined by 33 per cent to 62 homes in the first two months of 2019, down from 92 homes in the first two months of 2018. The top tier category includes condominiums, attached homes, and single-family homes.
The majority of sales in the luxury top-tier category were single-family homes, delivering 84 per cent of sales over $1 million, with 52 homes sold in January and February, a 32 per cent decline from the 76 homes sold in the same period in 2018.
Attached home sales remained quiet but stable from 2018 levels, with seven $1-million-plus homes sold in the first two months of 2019 and 2018.
The luxury condo market is still being held in check due to oversupply, with just three homes sold at more than $1 million in the first two months of 2019, compared to nine sales in the same time period a year earlier.
Brad Henderson, president and CEO of Sotheby’s International Realty Canada, said: Sombre buyers’ market conditions are expected for the City of Calgary’s top-tier real estate market in spring 2019 as the provincial economy endures a prolonged recovery.
‘According to the Calgary Real Estate Board, persistently weak demand and excess supply are expected to cause further price declines in 2019; a similar trend is projected for the city’s high-end market in the coming months.
Overseas property investors appear to be staying away from the luxury top tier property market in Calgary at the moment, and Henderson expects that situation to continue throughout 2019.
He concluded: ‘The conventional real estate market is expected to stabilize in 2019, but the transition is projected to take most of the year. While the outcome of the provincial election may affect market psychology, underlying economic and supply vulnerabilities position Calgary to endure buyers’ market conditions throughout 2019.’