Luxury home sales were on the rise again in July and new records were yet again broken. During the month, there were 80 transactions that took place for homes that were worth $1 million or more. On a year-to-date basis, there were 542 luxury homes changing hands from the beginning of the year until the end of July. This was an 18% increase over the numbers that were recorded during the same time period last year.
In the single family market, there were 75 sales in the luxury sector and there were 5 luxury condos sold. This wasn't enough to break the overall monthly sales record, which was set back in June when 104 luxury units were sold.
Many of these homes are being sold to executives in the energy industry from Canada, Europe and the United States. The demand for luxury housing continues to grow due to the strong energy sector. Top level executives from around the world are attracted to Calgary due to its overwhelming prosperity.
According to Peters & Co., an investment bank, investment in the oil sands may peak in 2014 to $30 billion. This in turn translates into higher-paying jobs in the province, which leads to more home luxury sales. As well, low interest rates have added to the appeal of the overall Calgary real estate industry.
Forecasts by Canada Mortgage and Housing Corporation show that the construction of single detached homes will be at its highest pace since back in 2007. Some of these new construction properties will be luxury units, which will keep the market supplied with ample choice for high-end buyers. As long as the oil sector continues to stay on course, luxury home sales should also stay on track with it.