In Edmonton in 2014, so far, there have been 125 properties sold at a price of $1 million or more, compared to 94 at this time last year and 75 in 2012.
“We have seen this trend throughout 2014,” says Greg Steele, president of the Realtors Association of Edmonton. “Almost two per cent of the single-family dwellings sold last month were over a million dollars. Compare that to last October where less than one quarter of one per cent of the sales was over a million.”
The entire province is benefitting from the energy industry and the economic boost that it has provided. As a result, homeowners in cities like Edmonton are confident enough to move up the property ladder.
“Buyers of $1 million homes feel that the economy is strong – or was at the beginning of the year and are long-term buyers – and that they see value for a $1 million and/or feel affluent enough to purchase one,” says Todd Millar, investor relations at Glenn Simon Inc. “Sentiment is stronger this year than last.”
Condo sales also gained some momentum, rising 2.6 per cent month-over-month and 9.75 per cent year-over-year. Residential property listings rose 18.6 per cent from last year.
However, the demand for single-family homes in the $350,000 to $400,000 remains high, with 185 properties selling in this range in October alone.
Calgary isn’t the only city in Alberta enjoying growth, not just in the volume of homes sold, but also in the price of those properties.