“Luxury Condo Sales Sink, Calgary Worst Hit”

If you find it difficult to reconcile BNN’s headline with what you’ve been reading in our local media about the strength of the luxury market, don’t worry.

It’s because the Sotheby’s report that BNN (and others) referenced is inaccurate.

BNN Report

(click to read article)

The first clue was when I looked at Calgary’s overall figures in Sotheby’s Top Tier Real Estate Report which states there were 2 sales in the $4M+ range in the first 6 months of this year, when there were actually 3.

  1. Crescent Heights: $11,100,000
  2. Aspen Woods: $10,350,000
  3. Elbow Park: $4,125,000
Luxury Overall Market

Source: Sotheby’s (click to enlarge)

Also, there were at total of 394 homes that sold for a million and over in the first 6 months of this year, not 388 (343+43+2).  But that’s no big deal.

Where Sotheby’s really drops the ball is the calculation for Jan-June 2012 sales.  They have a total of 298+49+6 = 353.  

In actuality, there were only 299 sales in the first six months of 2012.   So Calgary didn’t experience  “a 10% increase over the same period in 2012.”   It was a 31.8% y/y increase.

The chart above also shows that six homes sold for $4M and over in the first half of 2012 when there was only 1 such sale during that time and only 2 throughout the entire year.

Where are they getting their figures from?  I have no idea.

Let’s continue to where Calgary luxury condo sales are supposedly off by a whopping -37%.

Source: Sotheby's

Source: Sotheby’s

In the first six months of  this year, 43 condos have sold for $1M and over.  Between Jan-June 2012, there were only 19 such sales.    That’s a 126% increase, not a -37% loss.

According to Sotheby’s, 5 condos sold for over $4M in the first six months of 2012 when in reality the highest price sale was a $3.29M unit in Mission.   Not only that, but there was only 1 sale over $4M in Calgary in the first half of 2012:  that home in Britannia that sold for $6M.

Condo

Source: Sotheby’s (click to enlarge)

If you download the report you’ll notice that Sotheby’s breaks down the categories differently than CREB which is fine.  But the 2012 numbers are all wrong, making the year-over-comparisons completely off.

For example, in Sotheby’s Condominium chart above I was able to reconcile the 19 sales in the first 6 months of 2013 as being only low & high rise apartments, as opposed to CREB’s criteria of including all condos such as townhomes.   (Remember, “condominium” is a form of ownership, not a type of structure.)  Apparently their range of luxury starts at $1M and one dollar, instead of just $1M even which would make the tally slightly different from CREB’s.

In any case, using their criteria means that there were only 11 sales in the first half of 2012, not 30 as the chart states (11+14+5)   Only 2 of the 11 sales were over $2 million dollars, let alone 19.

For an accurate report on the first half of 2013 for Calgary’s luxury home market, read my June 2013 post.

Note to Sotheby’s: please correct and update your report.

3 responses to ““Luxury Condo Sales Sink, Calgary Worst Hit”

  1. Pingback: July 1-14, 2013 Calgary Real Estate Update | Calgary Real Estate Review

  2. Well, Sotheby’s has yet to respond to my alerting them that their report was incorrect. BNN’s reply?

    “While I do appreciate you pointing out the discrepancy in Calgary numbers, I’d encourage you to contact Sotheby’s, the original source of that information. Thanks for your interest in BNN.”

    Nice to see that BNN is committed to accurate reporting instead of just passing the buck.

  3. Pingback: July 1-21, 2013 Calgary Real Estate Update | Calgary Real Estate Review

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