December 2016 Calgary Luxury Homes Market Still Strong!
1. There were more Calgary homes over $1 million sold in December 2016 than in December 2015: 35 versus 29. These included detached, attached and apartment homes.
2. The median price of all Calgary homes sold over $1 million was $1,450,000 in December 2016 and $1,412,500 in December 2015. This is a direct result of more homes being sold above $1,500,000 in December 2016.
Calgary luxury home sales increased in 2016 compared to 2015 - 609 versus 512 homes sold, up 19%. The biggest percentage change occurred in the $2,000,000 to $2,499,999 price category at 73% - from 22 to 38 sales. This is a good sign. However, overall Calgary luxury real estate prices were lower in 2016, as most buyers held out for a better price. So what is really happening in Calgary's luxury home market?
The Calgary Real Estate Board (CREB®) December 2016 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 December 2016 numbers show that sales were up in every category except two with the $1,250,000 $1,499,999 being down significantly. Increased sales were in the $1,000,000 $1,249,999 and the $1,500,000 to $1,749,999 price categories. In December 2016, residential properties over $1 million accounted for 3.8% of all properties sold in the month and 3.4% of the YTD2016 sales - much higher than the October 2015 and April 2015 number. 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 YTD2016 numbers for $1,000,000+ homes sold reinforces the uptrend and confidence that has come back into the luxury home market. 609 homes were sold YTD2016 versus 512 homes sold YTD2015 - an increase of 19%. Compare this to the overall city of Calgary residential number of 17,809 homes sold YTD2016 versus 18,839 YTD2015 numbers - a decline of 5.5%
The numbers tell the true story of the luxury home market in December 2016: 81% of all sales were made between the $1,000,000 to $1,499,999 price categories.
Overall, sales of residential homes in 2016 did not improve over 2015 - except in the $1,000,000+ price range category. The graph below helps visualize the record high sales volumes achieved in 2014 across all price categories and how far off they were in 2015 and 2016.
Many luxury homes that can also 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 Rural Rocky View and Rural Foothills.
Rural Rocky View
This area covers country properties in the rural areas to the west, north and east of Calgary. It compromises 18% of the sales activity in the larger Region of Rocky View that it is part of. Rural Rocky View also has the highest Benchmark, Average and Median Price compared to the other cities, towns and areas in the Region. It also has the highest Months of Supply at 11.87 as compared to the range of 3.6 to 9.0 for the other areas in the Region. When comparing total sales for this area over the past 10 years, 2016 is well below the 10 year average and one of the lowest for this 10 year period. The chart below shows the historical sales for the past four years and confirms that sales of higher priced properties have still not recovered from the peak sales achieved in 2013 and 2014.
The chart below shows where the Benchmark Price dipped in the 2016 spring market, recovered and then slipped back down to settle at $934,900 in December. Inventory levels dropped in December from their summertime highs as did sales, yet inventory levels also remain high at 11.87 months.
Rural Foothills covers the rural area to the south of Calgary and makes up for 19% of the total sales activity of the larger Region of Foothills. It also has the highest Benchmark, Average and Median Price of all the other cities and towns in the region. The chart below shows the same trend as in Rural Rocky View and in the City of Calgary for luxury home sales. The $700,000 - $999,999 price range reveals the exception for 2016 with more home bing sold than in 2015.
The chart below shows where the Benchmark Price dipped in December 2015, recovered slightly and then continued it's slide down to a low of $629,600 in December 2016. Inventory levels also dropped as they normally do in December 2016 as did sales, yet inventory levels also remained very high at 12.44 months.
The Benchmark Price for all properties in Rural Rocky View and Rural Foothills was lower in December 2016 than in December 2016, a reflection of the general market trend in the Calgary Rural Region.
To see more City of Calgary Market Statistics visit: CREB® Monthly Statistics
To see more Calgary Regional Market Statistics visit: CREB® Monthly 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 help with your search!
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