October 2015 Market Highlights for Calgary Luxury Homes
1. There were fewer Calgary homes over $1 million sold in October this year than October 2014: exactly half - 32 versus 64. These included detached, attached and apartment homes.
2. The median price of all Calgary homes sold over $1 million was not the same for both years: $1,205,000 in October 2015 and $1,300,000 in October 2014. This is a direct result of more homes being sold in October 2015 in the $1,000,000 to $2,499,999 category than all of the other price categories combined!
Sales of Calgary luxury homes in October 2015 were down almost 40% compared to a year ago - confirming a slower market. Overall Calgary luxury real estate prices have still not drastically dropped as recently reported by the media and the belief held by many buyers. The October 2015 median price for all Calgary homes over $1,000,000 was only off 7.3% from the October 2014 median price. So where is the Calgary luxury home market really being affected?
The Calgary Real Estate Board (CREB®) October 2015 housing statistics show the breakdown of sales for all property types (detached, attached and apartment homes) in the city of Calgary.
The chart below shows the sales for each category over $1,000,000 outlined in red:
The October 2015 numbers reveal that sales were down in every category - the most drastic changes being in the $1,250,000 $1,499,999 and the $1,500,000 to $1,749,999 categories. In October 2015, residential properties over $1 million accounted for only just 2.3% of all properties sold in the month and 2.7% of the YTD2015 sales - similar to the numbers in April 2015.
The YTD2015 numbers for $1,000,000+ homes sold reinforces the trend that has unfolded for most of the year: the number of homes sold in the luxury home market is down. 449 homes sold YTD2015 versus 742 homes sold YTD2014 - that's a decline of 39.5% from last year's numbers. Compare this to the overall city of Calgary residential number of 16,692 homes sold YTD2015 versus 22,688 YTD2014 numbers - a decline of 26.5%
The numbers tell the true story of the luxury home market in October 2015: 81% of all sales were made between the $1,000,000 to $1,499,999 price categories. The appetite for homes over $2,000,000 has almost completely evaporated.
Compare the figures above to the $400,000 up to $599,999 price category range where the decrease in sales was not as drastic - down only 21% to 26%. The 6,699 sales in this price range represent 40% of the total 16,692 sales made from January to October 2015. The October 2015 Benchmark Price of $453,100 for all residential units sold in the City of Calgary resides in this range. The graph below helps visualize this trend based on a percentage basis.
There are also many luxury homes that can be found in the countryside, outside of the city of Calgary. The statistics for Calgary rural real estate and acreages for sale near Calgary are covered in the two Calgary Real Estate Board (CREB®) regions of Rockyview and Foothills.
Region of Rockyview
The Region of Rockyview covers a large rural area to the north of Calgary and includes Bragg Creek, Redwood Meadows, Cochrane, Crossfield, Beiseker, Irricana, Chestermere and Langdon. It excludes the city of Airdrie. The chart below shows the sales for each price category over $1,000,000 outlined in red:
Sales of properties in the Region of Rockyview over $1 million in October 2015 were similar to the city of Calgary with most sales occurring in the $1,000,000 to $1,249,999 and $1,250,000 to $1,499,999 categories. Residential properties over $1 million accounted for only just under 7% of all properties sold in October 2015 and 10.5% of the YTD2015 sales. These values are very similar to those back in April 2015.
The YTD2015 numbers show that there were more homes sold in the $3,000,000 to $3,499,999 categories than in 2014, indicating a trend reversal. Also, worth noting was there were almost the same number of sales in YTD2015 in the $1,500,000 to $1,749,999 category as in YTD2014. This is a clear indication that there is a subtrend that exists in the Calgary rural real estate market. The October 2015 Benchmark Price was $549,100 for all residential units sold in the Region of Rockyview. This is down slightly from the October 2014 Benchmark Price of $551,900 and the lowest Benchmark Price so far in 2015. The Benchmark Price was at an all time high of $572,300 in March 2015. This is confirmation that overall property sales in the region of Rockyview have weakened in 2015, with some specific exceptions.
Region of Foothills
The Region of Foothills covers a large rural area to the south of Calgary and includes Heritage Pointe, Okotoks, Blackie, High River, Cayley, Longview, Black Diamond and Turner Valley. The chart below shows the sales for each price category over $1,000,000 outlined in red:
The Region of Foothills had very few property sales over $1 million in October 2015 and showed a decrease of 29% from October 2014 - from 7 total sales to 5 sales. For all price categories, sales in October 2015 were down 32% compared to October 2014. Not surprisingly, most sales occurred in the $1,000,000 - $1,249,999 category.
The YTD2015 numbers showed that 2015 sales were down only 16% compared to 2014 - 72 versus 86. Surprisingly, there were more homes sold in the $1,750,000 to $1,999,999 category and the $2,000,000 to $2,9999,999 categories than in 2014, indicating a trend reversal. The October 2015 Benchmark Price was $396,400 for all residential units sold in the Region of Foothills. This is up from the October 2014 Benchmark Price of $390,300 and down slightly from the all time high of $405,800 in June 2015. This confirms that sales in the region of Foothills have slowed down in 2015 but the Benchmark Price has remained relatively stable over the year.
To see more Calgary Regional Market Housing Statistics visit: CREB® October 2015 Statistics
If you have questions on the current Calgary real estate market or about your home value, contact us online, or call 403-837-8100. We're here to answer any questions you have!
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