CALGARY, AB
CRUDE REALITIES AND GREAT VALUES FUEL CALGARY’S LUXURY MARKET When crude oil rose from US$25 per barrel in 2000 to almost US$150 in 2008, boom times came to the province of Alberta, the cornerstone of Canada’s energy sector in Calgary. The local economy and the luxury home market flourished, as high-paying jobs in the oil and gas industry flooded into Calgary, but the subsequent slump in oil and gas prices since 2014 shows how the advantage of being resource-rich also has a downside. Tens of billions of dollars in energy investments were cancelled or deferred as energy markets remained flaccid for most of the past six years. Over the past year, many energy sector executives and their families have been moving to their secondary homes in British Columbia or California, and Calgary has struggled under the weight of pandemic travel restrictions. “International buyers used to account for more than 30% of luxury home sales, but travel restrictions altogether ended the influx in 2020,” says Rachelle Starnes of Coldwell Banker Complete Real Estate, a leader in the Canadian luxury real estate market for the past twenty years. Calgary offers incredible lifestyle amenities, with Banff National Park just an hour away, and some of the best private schools in Canada. In addition, says Starnes, the luxury housing stock is among the finest in North America, especially in affluent areas located in Rocky View County; identified as the third wealthiest area in Canada,5 with an average household net worth of C$3.3 million.* The current market offers potential buyers significantly lower pricing to what has prevailed during the past decade. “Properties in many luxury areas in and around Calgary that sold in 2012 for C$4 million are now being offered for less than C$2.5 million, and properties once offered at C$20 million are being auctioned by luxury auction houses with selling prices less than C$6 million,” notes Coldwell Banker Complete Real Estate owner Susanita de Diego. The trend is toward upsizing into larger homes with more outdoor living space and resort-style amenities. Families with school-age children are buyers in the current luxury market. They desire home office spaces and beautiful scenery. In many cases, they buy homes with well-appointed kitchens and even butler’s pantries, and larger garages for bikes, kayaks, and other sporting activities. “Low inventory rates, low interest rates, and uncertainty in other world markets, will help the Calgary market, and with government incentives to assist large and small businesses to recover and grow again in 2021, this may spur more people to purchase more luxury homes in the Calgary and surrounding areas once again,” says de Diego. 100 | COLDWELL BANKER GLOBAL LUXURY® - THE REPORT 2021
See pages 130-131 for a full list of resources.