Calgary’s Luxury Real Estate Market Unabated By CMHC Rule Changes

Calgary’s expanding luxury market will soon be home to more high-end names: Rolls Royce, Nordstrom and Lamborghini to list a few.

“We’re leading the country in business growth, economic activity, GDP growth,” said Bruce Graham, Calgary Economic Development. “It’s just natural with income levels and opportunities in migration for luxury retailers and retailers of all segments to be coming into this market.” (Source)

By extension, it should be of little surprise that Calgary’s luxury real estate market continued to boom in August despite mortgage rule changes by CMHC directly aimed at the $1 million-plus segment.

Effective July 31st, CMHC stopped offering mortgage insurance for homes that cost $1 million or more, regardless if the buyer made a 20% or more downpayment.   That’s in addition to the rules introduced two years ago when CMHC stopped insuring mortgages on $1M+ homes if the buyer borrowed more than 80% of the value.

At the time of writing, a total of sixty-five Calgary homes have sold for a million dollars or more this month surpassing the August record of sixty-four set last year.  Ten of the sixty-five sales are condominiums.

A St. Andrews Heights home has the most expensive sale price so far in August at $3,300,000.  According to the listing, the Riverview Custom Homes property was a National SAM Award Winner in the best new home over 4000 sq ft category.  You can view pictures here.

Check back next week for the complete August 2014 Luxury Home Review.

New August Sales Record

New August Sales Record

 

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