A Growing Market
It may surprise you to learn that the Edmonton luxury real estate market is gaining some momentum. You might be thinking, homes in Edmonton are expensive as it is, how can there even be a luxury market? But there is, and it’s heating up. Although the luxury real estate market here still pales in comparison to the Calgary luxury market, Edmonton is picking up steam. In 2012, 89 properties sold in Edmonton that had list prices of a million dollars or higher, and in 2013 that number rose to 115 – a 29% increase over 2012. There were even vacant lots in Edmonton that fetched prices of a million dollars or more, with one going for $2.5 million.
What Does it Mean?
This increase in luxury real estate sales certainly bodes well for the state of the market and the city itself. Luxury real estate typically ends up selling for about 9% less than its list price, but a vast majority of 2013 luxury real estate sales saw homes fetching their list price or more – inferring that not only do people really want homes in this end of the market, but there is also competition for them. Having a healthy higher-end market is always a good sign. It’s important to encourage growth, not just in real estate, but in commercial industry as well. As more middle-class and luxury homes are planned, corresponding amenities are also drawn into the works. At the end of the day, more restaurants, shopping malls or outlet stores spell out an increase in employment opportunities, which the whole city benefits from.
What Does Luxury Look Like?
A million dollar listing can be deceiving. In a city such as Edmonton, a good portion of a list price can be largely dependent on location and not so much the property itself. Although you will a lot of new luxury real estate evolving in the form of gated communities and estates, there are also condos that can list for more than a million dollars, and for condos, location is often everything.
A Growing Market