Parkview Edmonton Home for Sale
Only 1 home has ever sold on the MLS® in Edmonton for over $3 million (it sold for $4.6 million in 2008). Today there are 8 residential properties asking $3 million or more, with one asking $15 million. Does Edmonton have an appetite for this type of listing?
Taking it down a notch, there are currently 105 residential properties in Edmonton asking $1 million or more listed on the MLS®, while 45 have sold so far this year. There are 168 asking between $750k and $1 million, while 121 have sold so far this year. That means there is a 14 month supply of homes asking over $1 million and an 8 month supply between $750k-$1 million. When you consider there is a 5 month supply of homes and condos in Edmonton in all price ranges right now, the luxury market is doing comparatively well; homes in higher price ranges typically take longer to sell.
When you compare luxury sales in 2010 to previous years, the luxury market is actually doing better than the market overall has done. So far this year we’ve seen the lowest total residential sales in Edmonton since at least 2005:
Edmonton Residential Sales
While luxury sales are ahead of every year except for 2007 (blue bars are $1 million and up, red are $750k-$1 million and green are the combined total):
Edmonton Luxury Home Sales
In fact, there have been more sales over $1 million in Edmonton this year than ever before. How can this be? For one thing, there is more supply of luxury homes in Edmonton than there has been in the past – of the 106 homes and condos asking over $1 million today, 20 were built since 2007.
Strong luxury sales show us that people with money see value in the Edmonton market because of its ability to perform from an economic perspective. Wealthy home buyers in Edmonton seem to have more confidence in our market than the average home buyer does in 2010.
Edmonton luxury home buyers – new or resale?
There seems to be a limit to what people will spend on resale. Once you get into a certain price range, buyers want something specific, something custom. That may mean buying something older and renovating or completely rebuilding, or it may mean building a completely new custom home. In either case the sale would not show up on the MLS® as a million dollar sale since the reno/tear down would sell for a lot less than the eventual value of the home, and the custom build would be done through the builder directly.
The issue with spending a LOT of money on building a custom home is getting your money back out of it when it comes time to sell. Especially when hundreds of thousands of dollars are spent on features that would only appeal to one owner (one person’s trash is another person’s treasure). I heard the other day of an Edmonton home owner who spent $50k per year on landscaping for the past 5 years, because he kept changing his mind. Now he needs to sell and there is no way he’ll get $250k for his landscaping. I’ve seen a $40k hideous chandelier that wouldn’t sell for $20 in a garage sale. Its easy to spend 10′s of thousands on draperies that only coordinate with one style. A $30k home theatre system from 5 years ago is probably worthless today since technology has changed so much in a short period of time.
So where is the cut off point between buying resale, and demanding everything custom for Edmonton home buyers? There are plenty of sales on the MLS® over $2 million, but only one over $3million, so I’d have to say it’s somewhere between in $2-$3 million right now. That’s something to keep in mind if you’re building a luxury home – don’t go too far or you could have a tough time selling when the time comes.
Want to see the most expensive properties listed in Edmonton right now? Check out luxury homes in Edmonton and luxury condos in Edmonton.
*All stats in this article are for Edmonton MLS® listings and sales only, they do not include sales in St. Albert, Sherwood Park or other surrounding communities.
Did someone just pick up Taylor Hall as a client?
Sturgeon County has many >$3M homes within Pinnacle Ridge Estates and Allin Ridge Estates, which I still consider within Edmonton. Not that I can afford any, but I’ve been monitoring these houses since 2005. When the market took a dive, I saw a few of these houses take a 50% price cut. But when the market stabilized, it’s amazing to see these prices perk right back up.
WIth Personal BAnkcrupties & foreclosured surpassing historical highs over the past 12 months, will the prices go down 50% again? I’ve seen new condos being reduced over $150,000 with developers-but this statistics don’t show on MLS as they have there own salesmen. Now that the average canadian is MORE indebt than the average American, and our average wage is almost exactly the same with the market crash ere too? It looks like inventory is starting to pile up. Over 4200 SFH and 2500 Condos for sale and they estimate at least 50,000 people have left edmonton the last year. I see there are over 7200 condos & house for rent on Kujiji. In some ways we are worse off than parts of the states where the housing market collpased!
Hmmm.,..if more luxury homes are selling and the average prices are staying stable does that mean the average priced houses are actually going down in value? Ordinarily an increase in sales of expensive homes would drive up prices, prices aren’t going up despite the 750+ market segment growing…that means the unchanged average price must be driven by either the “average” home going down in value or more sales in the lowest quartile of prices to balance.
Hi
I think this information is really helpful for us and there are 168 asking between $750k and $1 million, while 121 have sold so far this year. That means there is a 14 month supply of homes asking over $1 million and an 8 month supply between $750k-$1 million.