Calgary Luxury Home Sales Are Booming, But Are Prices Keeping Pace?

(Note: scroll down to see the repeat sales history of the luxury homes sold in Calgary this year)

A Vancouver blogger has created a site with an interesting objective: to track price reductions in the local real estate market.  I like the underlying purpose of the site because empowering and providing consumers with data is important.    But frankly, price reductions & comparisons to city assessments are an entirely unrealistic way of gauging the market for several reasons:

  1. Sellers set unrealistic prices.   If sales comparables are showing a home is worth $400,000 but the owner decides to list for $600,000, does that mean any future price reductions are evidence of a declining market? Obviously not.
  2. Agents ‘buying the listing.’    One of the questions sellers ask when interviewing potential agents is: “how much can you sell my home for?”  Some agents may give an inflated opinion so the seller chooses them.  Once under contract, the agent begins persuading the owner to grind down the price to a realistic market value.
  3. City Assessments are outdated and unreliable.   Would you buy a home that had its listing price loosely based on market conditions a year and a half ago, the subject property part of a mass appraisal, sight unseen?  In Calgary, the 2012 Property Assessment values are based on a July 1, 2011 market valuation and it’s not like an appraiser walked into every home and inspected the premises.

Below is an example that highlights why just following price reductions won’t  tell you the entire story, especially if you don’t know what the owners originally paid for it.

Aspen Woods

This Aspen Hills home was reduced over 32% in about a year and a half without selling.  Ouch, right?  The market must be crashing

Asking Price       Date

$ 2,500,000      03/13/08
$ 2,248,000      05/04/08
$ 1,990,000      09/01/08
$ 1,850,000     09/02/09
$ 1,695,000      11/17/09

But take a look at its sold price history:

$ 1,480,000    04/14/06
$ 1,600,000     01/05/10
$ 1,667,500     07/05/12

You can see that their $2.5M asking price was over $1 million more than they bought it for 2 years earlier.    It sold for a higher price each time the property changed hands.  The market wasn’t in freefall like the price reductions were hinting at.

What To Look For

When perusing “price-drop” websites, the listings you want to pay close attention to are the ones that have previous sales.  When the listing price is below the amount it sold for previously – that’s when you want to sit up and take notice.  The price reductions themselves are pretty useless to form any solid conclusions off of.

So, VancouverPriceDrop blog editor, if you’re reading this: try to focus on the homes that have had previous sales.  It will help paint a much more accurate and clearer  picture of the correction taking place in Vancouver.

Calgary Luxury Home Repeat Sales History

Without further ado, here are the luxury single family homes that have sold in Calgary this year that had a previous sale since 2006 and weren’t an infill, tear-down, etc.

While some are showing marginal increases, there are many that still are selling below peak levels while others have flatlined.

Altadore

$ 1,010,000 05/04/12
$ 1,000,000 06/14/10

$ 1,350,000 02/21/12
$ 1,300,000 11/24/06

$ 1,425,000 07/03/12
$ 1,260,000 10/16/09

$ 1,220,000 02/20/12
$ 1,060,000 11/01/10
$ 1,279,000 08/15/08

$ 1,590,000 09/18/12
$ 1,491,000 05/14/08

Arbour Lake

$ 1,280,000 12/19/12
$ 1,306,275 01/07/08

Aspen Woods

$ 1,175,000 04/26/12
$ 1,187,500 07/15/10

$ 1,184,000 04/16/12
$ 1,128,750 10/21/11
$ 1,525,000 07/23/07

$ 1,667,500 07/05/12
$ 1,600,000 01/05/10
$ 1,480,000 04/14/06

$ 1,950,000 03/22/12
$ 2,300,000 07/15/10

$ 1,120,000 05/05/12
$ 1,350,000 04/28/08

$ 1,100,000 06/04/12
$ 995,000 01/30/06

$ 1,800,000 06/27/12
$ 1,700,000 08/13/10
$ 1,900,000 08/10/07

$ 1,050,000 07/23/12 
$ 1,195,000 07/22/10

$ 1,170,000 11/14/12
$ 1,400,000 09/26/06

Bel-Aire

$ 1,775,000 04/24/12
$ 1,400,000 09/28/07
$ 1,100,000 11/20/06

$ 1,375,000 05/25/12
$ 1,061,250 01/18/05


Briar Hill

$ 2,200,000 05/15/12
$ 2,240,000 04/01/10

$ 1,550,000 04/24/12
$ 2,030,000 01/27/07

$ 1,000,000 11/13/12
$ 1,030,000 11/20/10
$ 1,065,000 04/29/06

Crescent Heights

$ 1,155,000 10/02/12
$ 1,020,000 06/29/09

Discovery Ridge

$ 1,000,000 10/16/12
$ 900,000 05/20/09
$ 865,000 01/23/06

$ 1,305,000 04/24/12
$ 1,275,000 02/26/06

$ 1,100,000 10/25/12
$ 1,070,000 05/26/10
$ 1,183,000 09/17/07

$ 1,180,000 03/22/12
$ 1,010,000 05/25/09
$ 1,183,000 09/17/07

$ 1,390,000 05/17/12
$ 1,292,000 03/27/06

$ 1,100,000 02/23/12
$ 975,000 06/10/09

Elbow Park

$ 1,085,000 10/17/12
$ 1,027,500 02/04/08
$ 849,000 03/15/06

$ 1,850,000 05/26/12
$ 1,550,000 06/14/06

$ 1,500,000 03/27/12
$ 1,650,000 08/16/06

$ 1,375,000 04/26/12
$ 1,350,000 12/02/11
$ 911,000 04/21/05

$ 1,500,000 09/27/12
$ 1,120,000 05/23/08

$ 1,050,000 06/15/12
$ 1,085,000 02/17/09
$ 975,000 10/19/07

$ 2,250,000 03/06/12
$ 1,799,000 05/21/08

$ 1,870,000 05/04/12
$ 1,799,900 06/24/11
$ 1,679,000 10/01/08

$ 1,075,000 03/16/12
$ 1,057,500 09/20/06

$ 2,075,000 06/15/12
$ 1,985,000 05/08/07

$ 1,775,000 11/26/12
$ 2,067,000 04/02/07

Elboya

$ 1,187,500 11/29/12
$ 1,185,000 03/23/12

$ 1,225,000 06/18/12
$ 1,160,000 03/26/10

$ 1,022,500 05/12/12
$ 1,125,000 08/02/07

Killarney

$ 1,065,000 12/16/12
$ 875,000 02/01/08

Lakeview

$ 1,150,000 09/14/12
$ 1,045,000 05/06/10

Lake Bonavista Estates

$ 1,095,000 06/25/12
$ 965,000 05/29/06

$ 1,080,000 05/16/12
$ 1,200,000 05/27/08

$ 1,460,310 02/24/12
$ 1,460,000 06/10/07

Lower Mount Royal

$ 1,200,000 05/31/12
$ 1,080,000 05/26/10

McKenzie Lake

$ 1,200,000 10/19/12
$ 1,105,000 01/14/06

McKenzie Towne

$ 1,070,000 06/20/12
$ 930,000 09/03/10


Midnapore

$ 1,800,000 08/29/12
$ 1,325,000 07/03/08


Mount Pleasant

$ 1,080,000 05/15/12
$ 948,000 05/13/07

$ 1,045,000 10/09/12
$ 905,000 07/15/08

$ 1,065,000 11/29/12
$ 1,049,500 07/27/09

Mt. Royal

$ 1,990,000 02/07/12
$ 1,951,000 05/26/11

$ 1,000,000 03/29/12
$ 1,000,000 06/23/06

$ 2,700,000 08/17/12
$ 2,250,000 11/26/07

$ 1,120,000 03/06/12
$ 1,100,000 10/14/09

$ 1,410,000 05/03/12
$ 1,175,000 11/22/07

$ 1,235,000 08/28/12
$ 1,300,000 07/08/11

$ 2,760,000 10/29/12
$ 3,150,000 09/22/08

$ 1,285,000 03/05/12
$ 1,070,000 07/20/10

$ 2,550,000 12/05/12
$ 2,200,000 09/12/06


Parkdale

$ 1,575,000 03/29/12
$ 1,500,000 03/25/09

$ 1,300,000 09/14/12
$ 1,260,000 03/22/11

Prominence/Patterson

$ 1,070,000 11/28/12
$ 975,000 04/09/07

Pump Hill

Pumphill

$ 2,700,000 04/20/12
$ 4,500,000 08/26/06

$ 1,210,000 06/10/12
$ 1,080,000 05/12/09

Richmond Park

$ 1,200,000 05/17/12
$ 1,070,000 06/23/06

Roxboro

$ 1,100,000 07/04/12
$ 1,125,000 02/04/08

$ 1,150,000 09/29/12
$ 1,100,000 09/16/11

Scarboro

$ 1,135,000 12/04/12
$ 1,300,000 04/28/08

Signal Hill

$ 1,200,000 08/03/12
$ 925,000 02/21/06

Springbank Hill

$ 1,170,000 03/23/12
$ 1,070,000 04/08/08

$ 1,120,000 11/10/12
$ 1,149,900 09/25/07

$ 1,699,000 05/04/12
$ 1,420,000 05/19/06

$ 1,695,000 10/29/12
$ 1,750,000 07/03/07

Sunnyside

$ 1,190,000 02/27/12
$ 1,040,000 05/28/09

The Slopes

$ 1,650,000 06/22/12
$ 1,570,000 06/08/06

$ 1,350,000 02/05/12
$ 1,500,000 03/21/06

$ 1,170,000 03/12/12
$ 950,000 08/28/09

Tuscany

$ 1,180,000 04/26/12
$ 1,210,000 04/08/11

Varsity Estates

$ 1,190,000 03/16/12
$ 1,130,000 08/03/10

$ 1,185,000 04/21/12
$ 1,100,000 10/29/10

West Hillhurst

$ 1,275,000 03/05/12
$ 1,475,000 08/22/06

$ 1,060,000 02/06/12
$ 1,045,000 04/19/10

$ 1,025,000 03/19/12
$ 1,030,000 05/27/10

$ 1,475,000 06/26/12
$ 1,310,000 04/14/09

$ 1,400,000 06/25/12
$ 1,400,000 04/26/11

West Springs

$ 1,100,000 06/06/12
$ 1,040,000 03/12/07

$ 1,450,000 08/02/12
$ 1,433,000 06/15/09

$ 1,450,000 08/24/12
$ 1,365,000 06/17/10

$ 1,080,000 07/31/12
$ 1,240,000 03/10/08

$ 1,095,000 10/04/12
$ 1,050,000 09/03/08

Wildwood

$ 1,400,000 04/24/12
$ 1,362,000 06/11/09

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