Calgary's luxury market is heating up

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Nestled on the winding road of scenic Highway 1A between Calgary and Banff is the Y House.

Designed by award-winning Saunders Architecture, led by Norway-based Canadian Todd Saunders, the 2,093-square-foot home was completed last year and is now up for sale.

Located less than half an hour from the amenities of the city and 20 kilometers from Mount Yamnuska in Kananaskis Country, the Y House not only offers sweeping views of the foothills, but the property itself is a sight to behold.

The brutal exterior of the weathered steel and glass one-story building stands out among the rolling hills of Carreig Ridge, an architectural subdivision west of Calgary. The house's protective armor-like envelope conceals a subtle, muted interior finish of natural oak and white marble, allowing the landscape to emerge from the interior.

Mr Saunders said the design was inspired by the need to preserve the natural features of the site, as well as a sense of tranquility. “Attitude is very important,” he said. “Peace is very important.”

To ensure optimal views, the design team created a 3-D map of the site's topography and its vegetation, a process so precise that Mr. Saunders compares it to a surgical procedure. Due to the complexity of this project, it took seven years to complete, he said. “We took our time because we weren't in a rush to sell it.”

Located on a ridge, the Y offers exceptional views of the landscape: the lake and mature spruce forest, the foothill meadows and the Rocky Mountains in the distance.

The house's distinctive, Y-shaped footprint is essential to the design program. In addition to maximizing the views, this layout creates privacy for the home's two bedrooms, which share a single-story open-plan living and dining room.

“The kitchen is the heart of the home,” Mr Saunders said. “And the bedrooms are retreats for peace at every end; so if you're in one bedroom, the noise won't disturb the person in the other.”

Exceptionally designed, the Y House is a sanctuary for the architectural connoisseur; for the busy professional who wants a break from the hustle and bustle of everyday life on weekends or throughout the season. But designing such a home without a specific user in mind was as unique a process as the property itself.

“You have to meet a lot of needs; you really have to know how people live,” explained Mr Saunders. “Here, the client, Carraig Ridge, really believed in our work.”

The $4.1 million property, which was listed last October, is one of 29 homes currently for sale in the Calgary area priced above $4 million. The Y House also stands out among the sprawling, lodge-style homes typical of the area.

“This is an opportunity for someone to purchase a home that has been built to the highest quality standards,” says listing agent Spencer Stupka, partner and associate broker at Charles Real Estate in Calgary. “We want to see it as an art sale, not just an estate sale. Art you can live with.”

After three months on the market, House Y has attracted interest from several buyers from Calgary and abroad.

“We have people looking at it as their primary residence, and we also have people looking at the property as a second or third or fourth property,” Mr Stupka says. “People who want a very quiet, peaceful, private life; 20, 25 minutes from the grocery store, they can be separated from the city.

The top end of Calgary's housing market moves more slowly than other Canadian cities, but that appears to be changing.

According to a report released by Sotheby's International Realty, during the second half of 2023, the prairie city surpassed the rest of Canada in sales by more than $1 million.

In January alone, 97 properties in Calgary sold for $1 million or more, a 70 per cent increase over the same month last year, as the number of listings in that price range also increased.

“As listings increase, so do sales,” says Anne-Marie Lurie, chief economist for the Calgary Real Estate Board, of her city's heating up market. “Most of the listing growth is at the top end of the market – about 11 percent of listings.”

Historically, the share of listings at the top of the market has been around 5 percent.

That's not to say luxury options are expanding in the Calgary area. It is a matter of supply and demand for certain types of products in certain places.

Million-dollar homes within Calgary's city limits have become commonplace in exclusive neighborhoods like Mount Royal and Elbow Park. In this price range, more and more common bungalows and semi-detached homes are being listed in highly sought-after areas of Calgary's inner city.

“Typically, you would expect (supply) to be a little higher at the top end of the market than at the bottom end,” Ms Lurie says. “Because there are few buyers at this scale.”

In January, the ratio of sales to new listings for properties asking $1 million or more in Calgary was 43 per cent, up from the usual 30 per cent. By contrast, in the Bighorn region, where the Carraig Range is located, around eight in 10 properties listed in January sold within a month.

According to Ms. Lurie, this means more choice for shoppers in BC and Ontario who are used to higher price tags.

“Some of the forces we've seen lately are somewhat supportive of the fact that we have migration from high-value markets,” he says, noting that it's driven by Calgary's employment in high-wage occupations. “Median income may be one thing, but there are also some very high earners in the city.”