Coldwell Banker Complete Real Estate announces the release of “The Report,” A Comprehensive Profile of the 2021 Luxury Real Estate Market in Canada, the U.S. and Mexico
“The Report” includes input from various Canadian Coldwell Banker Global Luxury Specialists from Coast to Coast, including Calgary based luxury team; THE STARNES GROUP.
Calgary, Alberta (March 8, 2021) – Today, Coldwell Banker Complete Real Estate announces the release of “The Report: 2021 Global Luxury Market Insights,” an in-depth analysis of emerging luxury markets and buyers. This report was curated by Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY) brand, and Coldwell Banker Global Luxury®
Susanita de Diego, Owner/Broker of Calgary, Alberta, Canada based, Coldwell Banker Complete Real Estate states, “This is an important publication for those invested in the North American luxury real estate market and includes across the board comparisons for the median sold prices, days on market, and list price to sale price ratios for the top 10% priced properties of key Canadian cities including Calgary”.
Included in the report are noteworthy trends shaped by an extraordinary year full of uncertainty and change, as well as top performing luxury markets of 2020 and those to watch in 2021.
This year, “The Report” combined sales data analysis with a record number of in-depth interviews from Coldwell Banker® Global Luxury® Property Specialists providing on-the-ground perspectives from diverse real estate markets. An entire section was dedicated to Mexico and Canada featuring Ottawa, Toronto, Vancouver, Halifax, and Calgary being noted as Canadian markets to watch in 2021.
Rachelle Starnes, President and CEO of luxury real estate specialists, THE STARNES GROUP, a part of the boutique Calgary brokerage Coldwell Banker Complete Real Estate, states “The pent-up demand for luxury homes over $1M is quickly emerging with sales in January and February of 2021 hitting 198 units sold (single family detached homes, CREB MLS® Reported Sales) in Calgary, Rocky View County and Foothills County. This sets a record for the last five years. The sales for the first two months of 2021 are up 128% over 2020 and 133% from 2019, for the same period.”
Starnes says “We should see an increase in prices with this excessive demand which has been fueled by the lowest uber luxury home prices we have seen in years. Resale prices are far below the cost to build and funds previously used for travel are now being invested in ‘staying at home.’ Because some mortgage interest rates have increased this week from 1.44% to 1.74%, prudent buyers will be pushing to get their interest rate locked in and purchase within the next 30 days.”
New definitions of luxury — like the intangibles of family, health, space and security — spurred new affluent living trends in 2020 as buyers realigned priorities by seeking out properties with access to the outdoors, privacy, and more space. Demand for mega mansions, estates and other luxury compounds surged, with 55% of Luxury Property Specialists surveyed that more square footage was the number one amenity that flipped in demand from 2019 to 2020. A new affluent demographic, known as Trailblazers, drove shifting buying trends as they migrated away from cities in favor of small, hidden gem towns, the suburbs, and second home destinations.
As wealthy homebuyers embraced new lifestyles, new trends prevailed. The top preferences expected to have staying power over the next 5 years include: the home office (27.5%), demand for a second home (22.5%), and the desire for single-family detached homes (22.5%).
In 2020, there was a dramatic change in many luxury markets that had been buyer’s or balanced markets in 2019. Escalating demand now pushed these markets into seller market territory, which is only anticipated to continue into 2021. To determine the Top 10 “Power Markets” of 2020, the Coldwell Banker® brand collaborated with The Institute for Luxury Home Marketing to analyze the markets with at least an average of 50 sales per month and the highest sales ratio percentages.
“The Report” also identified four key categories of emerging markets across the luxury home sector offering a range of lifestyle amenities, cultural experiences, and educational opportunities. The unexpected rise of these locations underscores the unforeseen dynamics at play during 2020 as the pandemic impacted many buyers’ decisions.
“Looking ahead, many positive economic indicators and demographic trends are becoming evident in 2021. Record levels of international migration, particularly to Vancouver and Toronto, are expected to impact the sales of luxury homes. Pent up demand and historically low inventory will continue to drive fierce competition for listings, with luxury properties in high demand.”
– Andy Puthon, President, Coldwell Banker Canada
“International buyers used to account for more than 30% of luxury home sales in our market but travel restrictions ended the influx in 2020. Properties in many luxury areas in and around Calgary which sold in 2012 for C$4M are now being offered for less than $2.5M and properties once offered at C$20M are being auctioned by luxury auction houses with sale prices less than C$6M. Because of the lowest luxury prices we have seen in recent history there are incredible opportunities in Alberta for luxury buyers. We predict even greater demand once the borders reopen and international buyers flood back into Alberta for its clean air and reputation as a destination of choice for luxury buyers”.
– Susanita de Diego & Rachelle Starnes with Coldwell Banker Complete Real Estate
