$12.25 Million Calgary Luxury Home Buyers Not Fazed by Oil and Gas Slump

August 19th, 2015  |  Home

Luxury real estate sales have been in a slump since oil and gas slowed down earlier this year. But that isn’t stopping Sotheby’s from listing Calgary’s highest-priced house since 2009 at a cool $12.25 million.

At 10,000 square feet, the mansion boasts a two-story, seven car garage; a 1,200 square foot patio; and a covered galleria that leads to a carriage house. Situated in the Aspen Estates community, it’s owned by Calgary developer Jim Quinn and is on the market for the first time.

Sotheby’s is confident the manor house will sell despite the 36 percent drop in sale of luxury homes priced million dollars and over.

Listing agent Corrine Poffenroth says she’s not expecting a typical buyer for this property. “Purchasers at this (price) point are not as impacted by day-to-day shifts in oil and gas or the economy. They’ve typically made their millions, and usually we find these buyers are paying in cash.”

The real estate trend for homes in 2015 has been fickle this year. The sales-to-listing ratio for million dollar plus houses - which is measure for health of the market - dropped from 40 percent last year to only 26 percent this year. Even with an abundance of luxury properties on the market, sellers remain unwilling to lower prices.

“We haven’t seen the drastic price reductions some of the buyers were expecting to see,” said Poffenroth. Buyers are getting frustrated with the lack in movement in pricing and will likely move on to other options.

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