Looking for a bargain mansion? This city has huge discounts on luxury properties

Two multimillion-dollar Alberta mansions have just sold for less than half their asking prices.

One 9,200-square-foot house in Priddis – which featured Swarovski crystal-laced faucets and mother of pearl tiles in the master bathroom – was listed for $3.9 million. It was sold at auction for just over $1.7 million, according to a CBC News report. Another mansion in the area, valued at $2.9 million, was purchased at about $1.1 million a 62% discount, according to the report.

Mark Evernden, president of sales with real estate firm Engel & Völkers in Calgary, told CBC that both houses were new builds and had been appraised just under the list price.

Investment advisor and former MP Garth Turner told CBC that the steep price cuts for the properties are just one sign of “deep discounts to come.”

“Around Calgary in the nice suburbs … where you’ve got houses in the $1 million to $2 million range, you go in with a sharp pencil and a cheque book, and you’re going to walk out happy,” Turner told CBC.

Turner said that Calgary’s luxury real estate market has been “taking it in the gut” for the last few months. And the figures seem to agree with him; the Calgary Real Estate Board recently reported that the average price of a Calgary home fell 6% in October from the same time last year. And those statistics don’t include sales outside the MLS system – like the auction where the Priddis mansions were so deeply discounted.

“Builders selling new homes to prospective buyers at deep discounts or private sales – none of these are included in the official numbers,” Turner told CBC. “And so when you factor those in, I really believe that the 6% number is a pale shadow of what’s actually happening in the market.”
 
 

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