Sales of luxury homes in Calgary suffered a -35.8% annual drop in August but still reached the third highest total for the month, a testament to how strong the market was in 2014.
A total of 43 properties sold for a million dollars or more in August compared to 67 the previous year.
An early 1900’s Mount Royal home was the most expensive sale at $2,975,000. It had been listed several times on MLS® over the years without selling, with the highest asking price of $5.2M sought in 2007.
Does that mean luxury home prices have taken a big hit?
Of the 43 properties that sold in August, 13 had formerly sold on MLS® within the past 10 years. Of those 13, one home sold for less than its previous purchase price (-11.8%). The remainder increased between 0.7% and 224.4%, although the several that experienced significant price increases were due to major renovations or because they were infills. (See chart below)
Aspen Woods, Hillhurst & West Springs were the most active communities with 3 sales each.
A recent luxury report by a big brokerage stated that Calgary had a “healthy 2.3 to 2.5 months’ supply of inventory in the $1 million plus range.”
With ~550 homes in Calgary listed for $1M+ and 43 selling in August, the inventory absorption rate was over 12 months. In July, inventory was similar with 56 sales: 9.9 months supply.