Two names stand out in the Edmonton luxury market: Kerri-lyn and Jason Holland. The professional and married partners have cornered the market for years now, leading in sales and becoming sought-after agents for clients seeking their dream home in Alberta’s capital.

“In the last five years, they’ve basically dominated the luxury space, with sales almost double the next agent,” says John Carter, broker/owner of Re/Max River City, out of where the Hollands operate in Edmonton. “They’ve hit a significant milestone. They’ve been top agents and deserve real recognition for overall performance in a five-year span.”

Alberta has been calling since the pandemic began, with more people leaving the big city in search of greater space and better value. While Calgary gets a lot of attention, Edmonton, with plenty of land and relatively low prices, has also seen an influx of residents. Carter says the luxury market, which comprises properties priced at $1 million and up, has been growing steadily over the last five years as well.

How Canadian luxury markets are faring

Indeed, there are opportunities to be had, as these sentiments are reflected in industry studies on Edmonton and other Canadian locations.

For example, the 2024 Royal LePage Carriage Trade Luxury Market Report, released last month, showed luxury sales were up this year, with strong demand in the prairies. Edmonton specifically saw a large gain in the first two-thirds of this year, with a 39.7 per cent increase in sales activity year over year.

Also, according to Sotheby’s Top-Tier Real Estate: 2024 Mid-Year State of Luxury Report, population growth for the year ending July 1, 2023, in both Calgary (5.9 per cent) and Edmonton (4.1 per cent) drove Alberta’s conventional and luxury markets to significant highs.

But luxury sales are up all across Canada, too: Engel & Völkers 2024 Mid-Year Luxury Real Estate Market Report highlights Toronto, Ottawa, Halifax, and Vancouver all performing better than expected in their respective luxury markets.

Success from diligence & discretion: Educational approach to all that’s buying, selling & building homes

The Hollands credit their luxury market success to their diligence and discretion, understanding everything that comes with not just buying and selling homes, but building them as well.

“Our approach is based on education,” says Kerri-lyn. “Educating clients on luxury value, dirt value, construction value, end value and resale value.”

The depth and breadth of the pair’s knowledge, she says, helps create trust and allows the buyer to make informed decisions for themselves and their family. Together, they’ve earned the MLS Medallion Award (for the top 5.0 per cent in MLS sales in the Edmonton area), the Re/Max Hall of Fame Award and the Re/Max Platinum Award.

Their journey into the luxury space

The Holland’s work in the luxury sector grew organically. Both wanted to work with clients who were respectful and kind, while potential clients took note of their professionalism and hard work. “Everyone gets the same customer service across the board, whether they’re luxury or not. Every possible detail from land investment or construction is fully understood by the client,” says Kerri-lyn.

Jason points out the opportunity was available, as agents who had operated in the luxury market were either starting to retire or simply not adjusting to current methods and the latest trends. “We did recognize the group of realtors was aging out, and they were of a more traditional manner — (things were) more done with just putting a sign on the lawn.”

“We started to apply the modern approach with the marketing, knowing all the details and features, and being able to explain these homes that were more complicated than a typical house,” he adds. “People in business for 30 years were just doing the same thing over and over again. They never adapted.”

Many agents want in but Edmonton lacks comparables & luxury comes with high up-front costs

Carter notes dealing with luxury homes takes specialized knowledge and requires assuming some risk. “Pricing luxury is a real skill; a lot of judgment goes into it. The irony is they’re much harder to sell and market,” says Carter.

“Lots of agents want to break into luxury, but they don’t understand the average costs upfront to properly promote it. There’s a lot more lead time, upwards of a year of preplanning, working with the builder a year-plus in advance, consulting, strategizing, dealing with layout changes — all for free.”

Because Edmonton is growing, pricing and selling luxury is more difficult, particularly compared to Toronto or Vancouver where so much is established. “Here, you’re getting a property that’s never been on the market — there’s nothing to compare it to,” says Jason.

Edmonton: A different ‘quieter’ wealth, where confidentiality is ‘huge’

Experience is also required to appreciate what clients are looking for when they’re seeking out a home in Edmonton. “It’s different money here, wealth is quieter,” says Carter. “You really need to understand the clientele and their needs. Confidentiality is huge.”

These particular clients include notable Oilers, like Connor McDavid and Ryan Nugent-Hopkins. Jason, a former professional hockey player with experience in the NHL and Europe, didn’t seek to use his connections but instead was discovered by interested Oiler buyers.

“I started before Jason and made it part of my business plan to not covet hockey players,” says Kerri-lyn. “I wanted to grind it out, make sure I established the business, developed a good work ethic, and if they came to us, that would be great.”

And they did.

A niche that came to them

“The reason why the players are so comfortable with us is that we understand the hockey life, going to new places, re-establishing everything from a new school to finding groceries. We lived that life.”

Lauren Kyle, founder of Kyle & Co Design Studio and wife of McDavid, worked with the Hollands to find the perfect spot for their ideal, custom-built home in Edmonton.

“It was our first time doing a project this big,” she says. “They were really involved in the process to make sure things were done perfectly.” Kyle is among many who have moved from the Toronto area out west, finding a lot more value for the money — and more sunny days.

“We really love the location,” she says. “(The Hollands) were definitely valuable for finding a good spot and good value for the home. They knew the neighbourhoods and our lifestyle. They helped us find a place where we could be close to our friends and start a family.”

The luxury real estate market around the world is becoming increasingly compelling to many, with reality shows detailing the dealings and drama from agencies out of Los Angeles, London and even Toronto. With high-profile clients, pricey transactions and custom-built homes, it seems Kerri-lyn and Jason would be well-suited for such an experience.

“We were approached,” says Kerri-lyn when asked, somewhat jokingly, if they’d want their own reality show. “I love to watch the houses on those shows. I would do it, but not if it’s about the drama. They’d have to keep it about the houses.”

Alberta is calling not just residents, but real estate agents, too.

As Canadians continue to flock to the province in search of better value in the real estate market, so too have agents looking to profit off of the increased interest. The surge of not only residents but also licensed professionals is a mixed bag according to some local agents on the ground.

Dramatic rise in applications for Alberta licensing

“There’s an unbelievable amount of people currently in the system looking to get their license in Alberta,” says Brad McCallum, realtor and owner of the McCallum Group, which is with Real Broker and based in Calgary. “Five or six months ago, it was anywhere from 3,500 to 4,500 people, or maybe even a higher number, enrolled in some part of their process to get licensed in Alberta.” 

A rush of new agents is joined by those who are interested in transferring. From January 2018 to December 2020, the Real Estate Council of Alberta (RECA) received 399 mobility applications from agents, already licensed in one province, looking to get a license in Alberta. That number rose dramatically from January 2021 to February of this year, with 1,385 applications across both real estate and mortgage. The majority came from British Columbia and Ontario.

Calgary: A competitive market for both buyers and agents

“Being a brand new agent in this market is probably tough,” says McCallum. “There’s very low inventory in the city and only so many transactions. This year was a slightly slower start, but our team of five is catching up now. There are lots of deals going on conditionally. It’s atypical business.”

Alberta in general is trending alongside the rest of the country, with a 2024 buying season well underway, where inventory is minimal, sales are brisk and bidding wars continue to pop up on occasion. Calgary in particular remains a competitive market, drawing interest from those in Vancouver and Toronto especially. 

According to the Calgary Real Estate Board, compared to the year before, February saw sales increase (22.8 per cent) and the benchmark price increase (10.3 per cent). In the same period, average days on market decreased (26.8 per cent) and inventory decreased (14.2 per cent). It adds up to a competitive market not just for buyers, but for agents as well.

A ‘capitalistic’ strategy ‘based on a scarcity mindset’

John Carter, broker/owner of Re/Max River City in Edmonton, is wary of agents who are working in Alberta without physically being there. He sees it as selfish, with these out-of-towners looking to profit from an interest in the province without doing the hard work on the ground.

“It’s very capitalistic,” says Carter. “It’s not about serving clients. It’s based on a scarcity mindset.” He says the vast majority are “with some brokerage no one has ever heard of” and have a 647 or 416 area code. 

“They’re writing an offer sight unseen,” and, in his opinion, “There’s a lot of negligence … They’re not practicing to their realtor’s code in Alberta, and not cooperating well with realtor colleagues.”

Carter supports the idea of mobility among provinces: he was licensed in Ontario from 2011 to 2014 and has been licensed in Alberta since 2002. However, he wonders if the process is too simple and can be taken advantage of. 

“That’s failing right now,” he continues. “I like the idea of mobility, but we’re finding I would say less than 20 per cent of agents in my firsthand experience are relocating.” According to Carter, “The vast number of professionals feel the barrier of entry to be too simple, too easy.” As a result, he says, “There are too many that aren’t following the rules.” 

Carter references examples of agents from out of town without access to the local board who call the listing agent, as well as others who don’t want to refer clients so they don’t give up a commission. While he doesn’t necessarily think all of these actions are predatory, sometimes it’s a lack of knowledge about rules and competency on the part of the agent.

Some try to skirt RECA’s rules but ‘the low road isn’t going to raise your business’

Arthur Chan, real estate broker at Re/Max Hallmark Toronto, is among those who recently got licensed in Alberta. When asked about the main reason for doing so, he says, “To sell, promote pre-construction projects in Calgary. “I wanted to offer my clients and investors an entry-level price of homeownership that’s more affordable vs Toronto. I’ve relocated over six families in the past eight months.” 

Chan, who’s been an associate at Re/Max Central in Calgary for about 18 months, says he uses Zoom, Google Maps and other software to assist clients remotely, but he also makes sure to get on the ground. 

“As for my clients wanting to buy resale, I fly down with them and conduct showings in person. They can get a better sense and feel of the neighbourhood and dwelling before making the purchase, and that type of feeling can only be evoked in person.”

Chan does note there are those trying to skirt the rules. “Some agents have been channeling (hiding) through builder’s referral agreements. However, that’s circumventing RECA’s strict policy and a major violation.”

McCallum acknowledges that there may be some bad actors but that their way of doing business simply won’t succeed. “There’s always going to be those realtors in the marketplace, but the low road isn’t going to raise your business. Consumers are pretty smart and people are doing a lot of research.”

Being on the ground: A huge advantage

His group is particularly active on social media and YouTube and credits some of its success to attracting those from out of province to come to Calgary.  While McCallum has been in Calgary for many years, he’s happy to serve residents as well as those looking to move there. An increase in remote work and shifting social priorities make Calgary attractive to many in B.C. and Ontario, contributing to his success. “I’ve only got a business because the world is willing to change,” he points out.

Part of the reason the McCallum Group is doing well is that they’re on the ground, which is a huge advantage compared to agents working remotely. “If you’re not there, if you don’t have someone on the team in the marketplace, someone to turn off the lights, lock the door, be present for a showing, there are definitely challenges.”

In such a tight market, Carter sees the lack of presence as negligence, putting the client at a disadvantage and susceptible to overpaying more or losing out on bids entirely simply because they could be alone with a listing agent there to support the seller, not the potential buyer. “How can you do comparables, pricing and strategy?”

In addition to providing the best service to clients by being physically in Alberta, there’s another reason Chan doesn’t mind flying out to Calgary. “I find it’s more laid back,” he says. “No one seems to be in a major hurry.”

“We have the most affordable housing in all of Canada, pretty much any city,” Brian Jean, Alberta’s minister of jobs, economy and northern development, said in March 2023. “They can sell their house in Toronto or Vancouver, buy four houses here in Alberta and live in one and rent three.”

Over 100,000 migrated in four years, at least as many more expected by 2027

Many took up the offer. Statistics Canada reported from July 1, 2022 to July 1, 2023, Alberta’s population grew by 4 per cent, with over 55,000 more people moving in than moving out. In four years, Calgary’s Housing and Affordability Task Force believes that number surpassed 100,000, with another 110,000 coming in the next few years.

The negative consequences of such a campaign are being realized as those moving into Alberta are finding their dollar goes farther, while those in Calgary are seeing prices increase.

Migration seen as problematic for long-time Calgary residents waiting to buy

“My clients who have been here for 15, 20 years are trying to get into the market, and the down payment they had is not good enough anymore,” says Anthony Lewis, a Re/Max Real Estate (Central) agent.

A lifelong Calgarian and realtor of over 10 years, he points to the migration as a problem for those who have been living in Calgary and waiting to buy. “People from Ontario and B.C. are coming in, and now it’s too pricey for (my clients) who want a detached home. Now it’s a townhouse or condo apartment.”

More market tenacity from non-Albertans

The province in general and Calgary, in particular, are seeing the same trends as the rest of the country in anticipation of interest rates going down: low inventory and more competition as people ready to enter the market. This leads to more tenacity from some buyers, particularly from outside the province.

“I get a lot of people from Ontario and B.C. offering sight unseen,” says Lewis.”They want to buy an investment property in Calgary, so we have video calls. I’m seeing unconditional offers which may be normal in Ontario, but over here we’re like, ‘get the home inspection.’”

About the Alberta campaign and its marketing efforts to Ontario and British Columbia, Lewis feels it’s “not really doing any favours to home ownership in Calgary.”

Issue seeping into local rental market

It’s not just prospective homeowners who are feeling squeezed; Calgary is seeing their rental crisis exacerbate.

The February 2024 housing report by Rentals.com notes the average Canadian rental price for a one-bedroom unit rose by over 12 per cent. This follows a 19.2 per cent increase from the previous year. Notably, studio apartments, typically the cheapest rental option available, saw their average price rise by over 30 per cent — meaning those seeking out the least expensive option are finding it tougher than ever to secure a place to live.

What’s more, this year CBC reported a dim outlook by the Canadian Mortgage Housing Corporation (CMHC), with vacancy rates set to drop as prices increase and the market tightens. The CMHC January 2024 report noted the average price of a two-bedroom residence in Calgary is $1,695, an increase of 14.3 per cent in one year.

“Where is everyone going to live?” asks Lewis. “People are getting kicked out of their homes.”

More agents, more competition — including from outside Alberta

The influx of residents has increased the number of licensed agents in the province, as well. 

The Real Estate Council of Alberta reports that since January 2021, it received 1,385 mobility applications from real estate agents and mortgage brokers outside Alberta to become licensed in the province. The three-year period previously saw only 399 such applications.

In addition to the rise of licensed agents to deal with the increase in transactions, there’s more competition. So, Lewis and others must face being skipped over entirely.

“Builders here are marketing to people directly in Ontario,” he explains. “I had this problem two years ago, where I was trying to get a presale for this condo, but they weren’t marketing to Calgary real estate agents.”

Increased unaffordability a growing concern: “This is our reality”

While Lewis acknowledges there’s more money to go around for agents, he worries about the increase in people who can’t afford to live there.

“We need to slow down, we need to look at what’s happening,” he says. “It’s out there now that Calgary is a nice city, and that’s what brings everyone here, but I don’t think it can slow down, and I don’t think the government wants it to slow down.”

He does have some advice for fellow agents facing similar dilemmas: “All we can do for the buyers we have that aren’t out of province is paint the picture of how it’s going to be,” says Lewis. “You’re going to be competing against five other people, and three of the five will be from B.C. or Ontario and will go over asking. This is our reality.”

Online searches on the company’s website for homes in these cities have significantly increased since 2019, with out-of-province buyers driving the demand for more budget-friendly markets.

Edmonton leads the way with quadrupled search interest

Edmonton has emerged as a top destination for Canadian homebuyers seeking cost-effective properties. Unique searches for homes in Edmonton have quadrupled since the pre-pandemic times, accounting for 2.0 per cent of total site searches between January and June, compared to 0.5 per cent during the same period in 2019.

Calgary not far behind with doubled search interest

Calgary, Alberta’s largest city, has also experienced a surge in online home searches. Unique searches for homes in Calgary made up 1.9 per cent of total site searches between January and June, more than doubling the numbers recorded in 2019.

Canadian homebuyers seeking affordability 

With high home prices and rising interest rates posing challenges for Canadian homebuyers, many are exploring options in more affordable regions. 

“Since the beginning of the COVID-19 pandemic, Edmonton has been a popular destination for out-of-province buyers looking for a change,” says Tom Shearer, broker/owner, Royal LePage Noralta Real Estate, Edmonton. 

“This demand has stayed consistent over the last year and a half, as qualifying for a home in high-priced provinces like Ontario and British Columbia has become even more challenging as a result of rising interest rates.”

Interest in Alberta’s major cities has gained momentum since the start of the pandemic. In the first six months of 2023, Edmonton was the top-searched city on Royal LePage’s website, followed by Calgary. Last year, Calgary was the most searched city, with Edmonton ranking second. Both cities were among the top 10 most searched locations in 2021 and the top 20 in 2020. Typically, according to Royal LePage, densely-populated cities in southern Ontario have held the top spots. 

Interprovincial migration jumps

Statistics Canada reports Alberta has experienced a positive net interprovincial migration for the first time since 2014-2015. In 2021-2022, the province welcomed over 21,000 net new residents, with many coming from Ontario (85,625 in-migrants versus 63,965 out-migrants). 

Since the start of 2019, there have been only three quarters where Ontario has reported a higher number of people migrating into the province versus those moving out. Meanwhile, Alberta has recorded 11 quarters where in-migration levels outpaced out-migration.

Housing market and prices

As of the second quarter of 2023, the aggregate price of a home in Edmonton was $434,400, while in Calgary, it stood at $643,200. Nationally, the aggregate price of a home was $809,200 in the same quarter.

Following its launch in Toronto in 2018 and subsequent expansion into British Columbia, HouseSigma now provides Calgarians and residents of other rural Alberta markets with access to market insights.

The platform provides users with real-time market information, including sold property data, complete sold price history, and the ability to request updates on new listings and sold properties for specific communities, customized areas or property types.

The inspiration behind HouseSigma came from the personal experience of its CEO and co-founder, Joseph Zeng, who encountered limited access to real estate data while purchasing his first home.

“Looking back to when I was buying my first home, I remember grappling with a lack of accessible, comprehensive real estate data. This personal frustration wasn’t just a challenge but an inspiration that became HouseSigma. I created the tool I wish I had when I was looking for my first home,” says Zeng.

Since its launch, HouseSigma has gained popularity among Canadian millennials, becoming a trusted resource for real estate information.

Michael Carney, the director of business development at HouseSigma, expressed enthusiasm about serving the Alberta marketplace, particularly in Calgary.

“Migration into Alberta, low inventory, and affordability concerns have created a difficult market for buyers,” Carey acknowledges. “Our commitment to transparency is at the core of our vision as we aim to become the homepage of real estate in Canada.”

HouseSigma’s platform also includes historical pictures of MLS listings, providing users with insights into a property’s past transactions and renovations.