Tuesday, July 04, 2006

Sales of Luxury homes increases across Canada

Luxury home sales surge

Million-dollar home sales are climbing at a rate never before seen in major centres across the country, says a new report from Re/Max.

“If the market continues at this pace, existing sales records for all types of real estate, including upscale properties, will be shattered by year end,” says Michael Polzler, executive vice-president, Re/Max Ontario-Atlantic Canada, in a news release.

The Re/Max report says luxury home sales rose to new heights in 12 out of 13 markets in January to May 2006 compared to one year ago, with percentage increases ranging from eight per cent in Halifax/Dartmouth to as high as 177 per cent in Edmonton. Only Windsor, Ont., where concerns over the future of the automotive industry are having an impact on real estate in general, reported a decline in sales.

Elton Ash, regional executive vice-president, Re/Max of Western Canada, says “Existing homeowners cashing in on substantial equity gains to re-invest in the top end of the market; strong economic performance across the country; and solid consumer confidence levels” are responsible for the boom. “Limited inventory has further served to underscore the intensity of the marketplace.”

Rising values and renovation have been major factors in the upper-end of the market, redefining price points and reclassifying residential neighbourhoods across Canada, says the report. Infill is occurring in virtually every older, established community located in close proximity to the downtown core, creating new upper end enclaves. Limited inventory levels in Vancouver, Calgary, and Toronto are placing serious upward pressure on prices in “'blue chip neighbourhoods,” with many properties now selling in multiple offer situations, says Re/Max.

Other highlights from the report:

- The highest-priced MLS sale in Canada this year – $10,880,000 – was in Greater Vancouver.

- The most expensive property listed for sale is a $45 million waterfront estate in Oakville, Ont.

- Out-of-province and international purchasers are a factor in Vancouver, Victoria, Kelowna, Edmonton and St. John’s.
- Teardown and infill is occurring in Vancouver, Victoria, Calgary, Edmonton, Winnipeg, Hamilton/Burlington, Toronto, Ottawa and St. John’s.

- Turnkey properties are most sought-after in Vancouver, Kelowna, Windsor, and Halifax-Dartmouth.
- Upper end condominiums are popular in Victoria, Kelowna, Edmonton, Winnipeg, Toronto, and Halifax-Dartmouth.

For more information please contact A. Mark Argentino

A. Mark Argentino Associate Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS 905-828-3434
FAX 905-828-2829
E-MAIL mark@mississauga4sale.com
Website: Mississauga4Sale.com

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