Are buyers finding deep discounts in Calgary’s luxury home market? An article from CTV links falling sales to dramatic million dollar discounts, while ignoring that asking prices don’t tell the whole story.
Fact: a home can be listed at any price. Whether or not it’s worth the asking price is a different matter altogether.
The two Priddis properties highlighted in the article had price tags of $2.9 and $3.9 million. That they ending selling for less than half of asking doesn’t mean that prices have cratered by 50%.
Those two homes were built this year and have no previous sales history. The sales-to-list-price ratio in this case is more a reflection of sellers being off the mark with their market evaluation and choosing an auction format listing in a slow market.
For a more comprehensive view, let’s look at the 31 luxury homes that have sold month-to-date in Calgary. Thirteen of them had at least one previous MLS® sale:
Ignore the homes that had percentage increases of over 100%; those are infills, were substantially renovated, or last sold over a decade ago.
We’re left with three homes that sold for less than they were purchased by up to $177,000. A home that was bought in June sold for $50,100 less this month. A good chunk of change, but not million dollar losses.
On the other hand, there were a couple homes that previously sold nearly 2 years ago that saw gains of 8.2% and 9.1%, or $149,500 & $100,000.
Has the Calgary luxury market been impacted due to job losses and Alberta’s economy? No doubt, most notably in sales. Have asking prices been reduced? Most assuredly. But those shopping for high-end homes today can’t expect to find million dollar discounts relative to what the sellers paid for it.