Dreaming of a log cabin in exquisite mountain country? Think Calgary – one of Canada’s most affordable cities.
Rural Luxury Sales “Have Blown Up” in Canada
Just as in the US, rural luxury home sales in Canada “…have blown up…” according to Daniel Kowall, an agent with RE/MAX Home of Real Estate in Calgary.
During the first half of 2021, home sales in Calgary have more than doubled total home sales in all of 2020. According to the July report from the Calgary Real Estate Board (CREB), Calgary’s year-to-date home sales hit 18,147 the end of June 2021 compared to 8,972 total home sales during 2020.
Justin Havre, founder of Justin Havre & Associates/RE.MAX First in Calgary, said, “We stated seeing bidding wars and price increases around the start of 2021. It was a bit of a gong show.”
Have Prices Blown Up Too?
Yes and no. In Calgary, the biggest town in Alberta’s rustic western province, prices have soared BUT Calgary’s prices are dwarfed by prices in Canada’s major cities of Toronto and Vancouver.
Yes – CREB’s July report indicated that the average 2021 home price in Calgary jumped from $452,730 Canadian dollars ($362,000 – US dollars) to $498,201 Canadian dollars ($398,000 – US dollars.)
No – Compare July’s average home price of C$498,201 or US$398,000 in Calgary to the average home price in Toronto – a record C$1,062,256 ($850,000 – US dollars), according to the Toronto Real Estate Board, and the average home price of C$1,801,100 ($1.44M – US dollars), according to the Real Estate Board of Greater Vancouver that also indicated Vancouver had the highest home prices in all of Canada.
Havre said that Toronto’s and Vancouver’s home prices are “…pushing buyers into Calgary almost daily. They find out they can buy a house for a fraction of what it costs there. And we’re one of Canada’s most affordable cities.”
Calgary’s Condominium Prices Remain Relatively Flat
COVID essentially rendered apartments as “null and void,” said Kirby Cox, an agent with Kirby Cox & Associates in Calgary.
Inner-City Calgary Getting Boost from Influx of Tech Companies
Calgary Economic Development, a public-private partnership, has actively courted tech-related companies to move into the city’s center. According to Brad Perry, the interim president and CEO of this public-private partnership, “We’ve attracted nearly 5,000 jobs in the last two years…there’s a correlation between residential sales volume and tech-related companies moving to Calgary.”
Pre-pandemic, buyers moved to Calgary’s inner city to be closer to jobs. Now, it’s the opposite. Condo inventory is up and condo sales are s-l-o-w. (Translation – if you and/or your clients don’t want a log cabin just outside of Calgary, now is the time to buy a condominium in inner-city Calgary.)
Thanks to Calgary Real Estate Board, Toronto Real Estate Board, Real Estate Board of Greater Vancouver and The New York Times.