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Low Inventory A Challenge for Canada’s Luxury Real Estate Market

Calgary’s luxury sales are declining, yet the segment's relative affordability in Calgary is generating steady interest.

by Javier Valdez
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Luxury remains relatively hot in Calgary’s resale real estate market compared with other major markets in Canada, a new report suggests.

Although activity in the $1 million-plus price range is not as high as it was last spring, the Top-Tier Real Estate: Spring 2023 State of Luxury report by Sotheby’s International Realty Canada points to Calgary’s luxury market being the healthiest among Canada’s largest cities.

“Demand is certainly there,” Don Kottick, president and chief executive office of Sotheby’s International Realty Canada. “What’s holding it back really is the low number of properties coming on.”

Low inventory is a challenge in every major city from Vancouver to Montreal, particularly in the luxury markets, the report notes.

In fact, supply is even lower than last year when all resale markets were faced with unprecedented demand.

In part, the low inventory is a result of fewer sellers listing homes, Kottick adds.

While sales are down 64 per cent in the first three months of 2023 in Toronto, year over year, and 53 per cent in Vancouver in their luxury segments, Calgary’s high-end market has fared slightly better, down 36 per cent.

When compared with activity in the years before the pandemic, however, luxury market activity in Calgary so far this year is 223 per cent higher than the first quarter of 2020.

Source: Calgary Herald

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