Kirby Chan's Blog

A Real Estate Sales Representative Serving Greater Toronto. Search MLS Listings, Find Homes For Sale and Sell Your Home.

Luxury home sales hold steady, but not for long.

Leave a comment

Luxury home sales have outperformed virtually all other residential price points this year, but activity in the top-end is expected to taper in most major Canadian centres in coming months.

Given the transition occurring in most residential real estate markets, upper-end sales remain exceptionally strong.The market for luxury homes is usually the first to show pressure cracks, but the reverse is actually true this year, with pent-up demand (due to trade-up activity), less speculation, and job transfers all factors contributing to stability in this segment.However, uncertainty in financial markets both here and abroad is expected to give purchasers cause for concern in the immediate future.

The top-end of the market represents less than five per cent of total sales, but activity is generally a gauge of overall market conditions.Leading the country in terms of percentage increase in luxury home sales are Regina (up 306 per cent); Winnipeg (up 89 per cent); St. John’s ( up 78 per cent); Saskatoon (up 72 per cent); Kitchener-Waterloo (up 47 per cent); Ottawa (up 36 per cent); Halifax-Dartmouth (up 20 per cent); London (up 14 per cent); Greater Vancouver (up five per cent); and Victoria (up four per cent). Solid performance is likely a result of consumer confidence, particularly in provinces like Saskatchewan, Manitoba, Newfoundland, Nova Scotia, and parts of Ontario where solid economic fundamentals helped to bolster the number of homes sold in the upper-end.

If you are looking to buy a luxury home, 2009 maybe the year to get a good deal.

Market

Price Point

Sales/07

Sales/08

Luxury

All Res. % +/-

% +/-

Greater Vancouver

$2 million

370

390

5

-24

Victoria

$1 million

159

165

4

-18

Kelowna

$1 million

71

63

-11

-30

Edmonton

$850,000

110

67

-64

-23

Calgary

$1 million

312

258

-17

-30

Regina

$500,000

17

69

306

-11

Saskatoon

$500,000

11

19

72

-14

Winnipeg

$500,000

62

117

89

0.01

London

$350,000

383

435

14

-9

Kitchener-Waterloo

$500,000

128

188

47

-5

Hamilton-Burlington

$750,000

76

50

-34

-7

Greater Toronto

$1.5 million

505

487

-5

-13

Ottawa

$750,000

99

135

36

-3

Halifax-Dartmouth

$400,000

218

262

20

-7

St. John’s

$400,000

28

50

78

11

Source: RE/MAX, Local Real Estate Boards

Other highlights include:

 

Advertisements

Author: Kirby Chan

I am a Real Estate Sales Representative servicing the Greater Toronto Area.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s