LUXURY HOME FRENZY
$6-million sale a sign of solid economy
It is a testament to Calgary’s strong luxury home market.
An upscale Britannia home recently sold for $6 million in just days, as multiple bids upped the price by $1 million from its original listing, making it the third most expensive MLS sale ever in the city, the Herald has learned.
The custom-built twostorey-plus sandstone estate property has more than 10,000 square feet of development with a third-level observatory loft and an elevator.
According to the Calgary Real Estate Board, the top two MLS sales ever in Calgary are for $10.5 million in Elbow Park/ Glencoe in August 2009 and $8 million in Crescent Heights in June 2008.
The Britannia property was listed and sold by Rooney Cronin + Valentine of Re/max Real Estate Central. Sue Anne Valentine was the listing agent and Donna Rooney was the buyer’s agent.
Valentine and Rooney were also the listing agents on the record sale in 2009 of the $10.5-million property once owned by former Cal- gary Flames goaltender Mike Vernon.
Bob Jablonski, president of the Calgary Real Estate Board, said the recent luxury-home sale indicates there is plenty of confidence from the consumer in the current economic stability.
“This buyer bought it obviously before the (provincial) election results came out. So if you can imagine spending $6 million before the election comes out when supposedly everyone is worried about what’s going to happen.”
“It shows great confidence by the consumer and he bought it in a neighbourhood that is well-established and a very desirable neighbourhood,” Jablonski said. “So that tells me they’re OK with the world.”
Jablonski said the energy sector is doing well in the province, the economy is leading the country and people are confident in making big real estate purchases because they plan on staying here and believe it’s a good investment.
Year-to-date until April 22, CREB said there have been 148 sales in the city over $1 million. Last year for the corresponding period, there were 136 sales in that price category.
“Resale activity in Calgary has been improving and is giving some existing homeowners an opportunity to sell their home and trade up into something larger,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Some prospective buyers have also benefited from higher wages, bonuses and favourable mortgage rates, supporting demand for luxury homes.”
Mike Fotiou, associate broker with First Place Realty, said Calgarians are regaining their optimism. An example of that is that Alberta’s small business owners lead the country in confidence according to the Canadian Federation of Independent Business.
“Average weekly earnings and employment growth for Alberta continues to top all of Canada while the unemployment rate in Calgary fell to 5.1 per cent,” Fotiou said. “This has translated into increased sales in not only the luxury segment, but the overall residential market as well.”