The above property was one of two Prides luxury properties that were the centre of a lot of media attention earlier this month, with several reports headlining that luxury properties were going for half their asking price in Calgary.
The 9,200-square-foot house located in Priddis, 40 minutes southwest of Calgary, was listed for $3.9 million but purchased at auction for just over $1.7 million. [CBC News]
This is a perfect example of how misleading media stories are causing mass hysteria in the real estate market in Calgary. Since we were aware of this story from the source, when it actually happened, we wanted to clear up some things to give people an accurate depiction of the luxury home market right now.
This particular auction happened in August, but the story was only published at the beginning of November, during a time when ‘doom and gloom’ is being broadcast about our city’s real estate market.
The properties were overpriced. This is a huge point, because the properties were way overpriced, the selling price, is actually the accurate appraisal price of these homes. The average listing price for a home in Priddis right now (as per CREB®) is approximately $1.1 million, and even if you look back at 2014, the average listing price for a home in Priddis was $1.2 million. Even at the very high-end of sale prices, these auction sales were right in line with that. For whatever reason, these properties were listed at over $3 million, which is way off what they should have been listed for. That price is not consistent with any listing in Priddis in the last few years. So the homes sold, for exactly what they were worth, not at a discounted 50%.
The luxury market has taken a bit of a hit with the economy in Calgary, but the biggest thing when selling a luxury home (or any home) is in pricing it correctly. Realtors need to do their due diligence in researching the marketplace and area and listing accordingly. Properties are still moving, even in this economy.
If you have questions about the luxury home market in Calgary, or about listing your home properly, please feel free to contact us.
