“Yes, it’s stabilized, but they (luxury homeowners) took a massively bigger hit than the rest of the marketplace,” Hripko said. “The luxury market took a beating almost instantly in 2015, so if a home was worth $5 million, it was probably selling at $3.5 million. And it may still be selling at that same $3.5 million today.” Read Full Article ->
“We are seeing buyers who were priced out of the luxury market in previous years buy their dream home,” says John Hripko, agent, Royal LePage Benchmark in Calgary. “Luxury homeowners are also taking this opportunity to move up in the segment. The opportunity for those trading up within the luxury segment is unprecedented (because) inventory for luxury property is not appreciably increasing and sales during the 12-month period are steady compared to the year prior.
“Sellers are reluctant to put their properties on the market and sell at a loss. The collective impact of this trend has minimized price decline.
Hripko, who also owns a property management and leasing company, said many sellers are choosing to go that route.
He added that some of his clients believe any money coming in is better than no money coming in.
“Right now, they’re hemorrhaging money because they have mortgages, utilities, taxes etc.,” he said. “So leasing it out will stop the hemorrhaging but it won’t necessarily stop the bleeding.”
Royal LePage Benchmark realtor John Hripko considers the dip to be “negligible” in the Alberta city. He would characterize the luxury housing market to be relatively “flat” in Calgary, but economic concerns could be playing into the lack of growth. The city hasn’t seen a “seller’s market,” in which scarce supply means prices can stay high, since 2013.
“This marketplace will turn around,” he said, noting that it likely won’t see substantial improvement for a couple more years and until the city diversifies away from the energy sector. “The overall economic scenario in Alberta and Calgary has to improve dramatically.”
It could be an opening for Calgary buyers, said John Hripko, an agent at Royal LePage Benchmark. “We are seeing buyers who were priced out of the luxury market in previous years buy their dream home,” Hripko said. “The opportunity for those trading up within the luxury segment is unprecedented.”
“While Calgary’s luxury condo market is still showing some softness, our luxury house market has stabilized after years of sustained low prices,” said John Hripko, associate broker, Royal LePage Benchmark, in a statement.
“However, some of the median price appreciation gain can be attributed to a relatively healthier upper-end luxury property market while price reductions to lower-priced luxury properties have pushed some listings out of the luxury category.”