Luxury sales numbers rebound; experts point to demand's impact on pricing

Calgary's luxury resale housing market bucked the trend in 2016, posting modest improvements in sales volumes throughout the year and recovering somewhat from the significant decline experienced in 2015.

Yet industry observers urge caution at interpreting this past year's numbers at face value, saying a return to long-term averages is still far away.

Homebuilders, developers cite international interest in region

Over the past four months, one-third of the 11 sales at the luxury Creekstone condo project in Canmore's Spring Creek development have been to foreign buyers.

And while there have been no purchasers from China — yet — developer Frank Kernick said it is "just a matter of time" before they come.

Luxury buyers want it all including the (second) kitchen sink

Today's homebuyers want more for less – a pattern that is also starting to manifest in the luxury market, say local industry experts.

"There's no question that, like everybody, we've felt the pinch," said Danny Raposo, general manager of Astoria Custom Homes, which is building in Watermark at Bearspaw, just outside the city limits.

Still, Raposo describes 2016 as "a decent year," noting an increased interest in Astoria's Watermark product during the eight weeks prior to mid-September.

Bearspaw, Springbank appealing to a more diverse sect of buyers

Long admired for its opulence, the communities of Bearspaw and Springbank just outside of Calgary's northwest border are now attracting a wider range of buyers who are looking for a bit of everything, say industry professionals.

"Years ago, the area was big into horse culture – everyone wanted to buy a pony for their teenaged daughter. Now, it is more about organized sports, family vacations," said Jeff Neustaedter, a real estate professional whose office last year saw 35 transactions above the $1.1-million mark in Bearspaw alone, ranging from 40-hectare sites to secluded parcels.

While the area between Calgary and Cochrane has always been known for its stately homes, McKinley Masters Custom Homes owner Mark Kwasnicki noted homeowners want more these days – they want space to stretch their legs, but also to get away from the hustle and bustle of city life.

Beauty is in the eye of the beholder, say housing experts

The term "luxury" defies a single definition – especially when it comes to housing in Calgary, say experts.

"Luxury is specific to each individual, driven by their particular needs," said Kevin Mullen, president of the Empire Group of Companies, which has constructed dwellings in most of Calgary's upscale communities.

"If someone values the weekend lifestyle, then you might live in Springbank. If being proximate to the Glencoe Club is important, then you might choose Elbow Park. Those lifestyle decisions reflect into defining a luxury community."

Development standard finds its way back into the Calgary region

When is a detached home still a condo? When it's a bare land condo, an under-utilized development standard that is once again sprouting up in the Calgary region.

Developers in new areas such as Watermark in Bearspaw and Shawnee Park are designating some or all of their respective developments as bare land condos as part of a more collective approach to building and maintaining communities.

Bare land condos have previously popped up in other area communities such as Tanglewood Estates, The Lake at Heritage Pointe, Okotoks Air Ranch, Elmont Green and Lott Creek Grove.

'If you build it, they will come'

Despite ongoing softness in the Calgary regional real estate market that has moderated activity in upscale communities such as Springbank and Bearspaw, industry experts believe the value proposition of upscale rural living remains unaffected.

"We have not seen construction stop," said Ian Macdonald, director of sales and marketing at Watermark at Bearspaw, a luxury estate community that recently won a Sales and Marketing (SAM) Award for Community of the Year, Calgary Region from the Canadian Home Builders' Association (CHBA) Calgary Region.

"I call it the Field of Dreams approach — if you build it, they will come."

Communities of Bearspaw and Springbank perfect for country living

Nestled on the outskirts of Calgary's city limits in Rocky View County are the communities of Springbank and Bearspaw.

These two communities offer a quiet setting with the big city nearby. The name for Springbank originated from a creek that runs through the community, known as Springbank Creek. The community started off as agricultural based and in the
1950s started to attract rural residential living.

At a stones throw away from the Calgary city limits — with views of both the prairie grasslands and Rocky Mountains — the communities of Springbank and Bearspaw offer open air living with easy access to city amenities.

The Canadian Pacific Railway established the Bearspaw Station in 1909. Named for Chief Masgwaahsid or Bear's Paw, the station west of Calgary has become a sought-after destination for acreage living and commuters.