Quote:
Originally Posted by Manhattanboy
I'm blown away by the recent asking prices at the high end of the market.
$5m and $6m homes just listed in the inner city - Mount Royal and Britannia.
Are these people crazy? This is Calgary. Not Toronto or Vancouver.
|
I keep an eye on the market and there are very few of these places moving... And if they do, it's almost never quickly. There's a new listing today in Mount Royal at $5.75, which seems impressive at first glance... until you realize that it was asking $750k more a year ago when it sat on the market for 6+ months... Lots and lots of recycled listings that simply don't move in the $4++ range.
The real 'heat' in the Calgary market is driven by people coming from ON and BC who are selling their townhouse in Milton or starter home in Chilliwack for $1.3 (or whatever) and moving here to get more space, shorter commutes and carry smaller (if any) mortgages... Those people are driving the ~$750-$1.3 market, which is pulling up the lower end of the Calgary market (~$500-750) and also pushing up prices as people sell their 'normal' house and upgrade into the ~$1.5-2mm range.
The higher end of the market is less affected, as typically, people with $3+ million homes in Toronto or Vancouver are typically professionals that more tied to the locale... They're also typically less affected by cost of living pressures, so they're able to enjoy the greater amenities in the larger cities. Simply put, no one's selling their $5mm semi in the Annex in Toronto to move to Mount Royal, so there's no outside market pressure to drive sales, so the local sellers at that level have to rely on organic upgrading from locals, which are few enough that there isn't a ton of demand... It's nice to see the sellers (and realtors) try though...