69 per cent of
markets set records for best-ever first
quarter sales
Mississauga, ON
(April 26, 2010) – Luxury home
sales soared in the first quarter of 2010 as
affluent purchasers moved to take advantage
of favourable market conditions across the
country, according to a report released
today by RE/MAX.
The RE/MAX
Upper End 2010 Report, highlighting
sales and trends in 13 major Canadian
centres and five sub-markets, found that
improved economic performance, increased
personal wealth, immigration and foreign
investment all contributed to a serious
upswing in sales. Virtually all areas
experienced double and triple-digit
increases between January and March of this
year over 2009 figures for the same period.
Nine out of the 13 markets examined (69 per
cent) shattered existing records – setting
new all-time highs for first quarter
activity in the upper end.
“Real estate
continues to resonate with purchasers at
every price point,” says Michael Polzler,
Executive Vice President, RE/MAX
Ontario-Atlantic Canada. “With the top end
of the market shifting into high gear, every
segment of the residential real estate
sector is now operating in tandem. Despite
the upward momentum, there are still deals
to be had – especially at the higher price
points—a fact that is motivating buyers to
act.”
While
comparisons are being made to one of the
worst first quarters on record – it’s
important to note that the bounce back in
many areas – including Greater Vancouver,
Victoria, Winnipeg, London-St. Thomas,
Greater Toronto, Ottawa, Montreal (Island),
Halifax-Dartmouth, and St. John’s -- exceeds
record levels reported in years past.
Leading in terms of percentage increase in
sales is Kelowna (700 per cent), Montreal
(Island) (300 per cent), Victoria (275 per
cent), Greater Toronto (263 per cent),
Greater Vancouver (184 per cent),
Hamilton-Burlington (169 per cent), Edmonton
(164 per cent), London-St. Thomas (125 per
cent), and Ottawa (121 per cent).
“Recovery in
the upper end has been nothing short of
remarkable,” says Elton Ash, Regional
Executive Vice President, RE/MAX of Western
Canada. “This segment of the market was
hardest hit when the recession took hold—yet
its comeback has been fast and furious.
There is no doubt that mindset has changed
and confidence has returned. One only has
to look at the percentage increases to see
the current upward trajectory.”
Economic
performance has been a major driver,
boosting consumer confidence levels across
the board. The tangibility of bricks and
mortar has also played a role in record
activity – a development that began in 2008
as affluent purchasers reduced their
exposure to equities and shifted their
earnings into real estate holdings.
Recovering stock markets – and portfolios –
in the months ahead will further contribute
to housing market activity.
“Luxury sales
as a percentage of the market have been
steadily increasing in recent years – with
the exception of 2009,” says Sylvain
Dansereau, Executive Vice President, RE/MAX
Quebec. “With the return to economic
growth, it’s expected that the number of
high net worth individuals will begin to
rebound, following two years of consecutive
decline. This will continue to help prop up
Canada’s luxury market going forward.”
Immigration
and foreign investment have also had an
impact on the luxury segment – and in some
markets, seriously bolstered sales. Middle
Eastern buyers, Mainland China investors,
and Europeans—to a lesser extent—are
represented in virtually every market across
the country. Canada’s sound banking system,
political stability, and strong dollar are
attracting foreign investment – and that is
spilling over into high end residential real
estate.
Most active
in 2010 were business executives,
entrepreneurs, and professionals. Location
was first and foremost among upper-end
buyers, followed by a preference for newer
homes or those that are turn-key (completely
renovated). With the exception of Toronto,
buyers could be relatively particular and
take their time in making decisions as
balanced conditions characterized markets
across the board. Given adequate supply,
prices are likely to hold steady or
experience modest increases in the majority
of markets in 2010.
Canada’s most
expensive luxury markets are shared equally
among East and West, with Greater Vancouver
topping the entry-level price point for
high-end homes at $2 million, followed by
$1.5 million in Greater Toronto and Montreal
(Island). Upper-end value markets were most
abundant in Atlantic Canada and smaller
centres in Ontario, where luxury home prices
started at $400,000 in St. John’s, $450,000
in Halifax-Dartmouth, $500,000 in London St.
Thomas, and $750,000 in Ottawa and
Hamilton-Burlington. Winnipeg and Edmonton
represented good value in the West at
$500,000 and $850,000 respectively.
Greater
Vancouver holds the title for the most
expensive home sold through MLS in the first
quarter. The property—an 11,600 sq. ft.
home on ¾ of an acre on the city’s Westside,
changed hands for $10.06 million. Other
noteworthy sales include: $7.25 million in
the Greater Toronto suburb of Mississauga,
$6.25 million in Toronto’s central core,
$5.75 million in Calgary, $5.5 million in
Montreal (Island), and $5.3 million in White
Rock/South Surrey. The priciest MLS
listings could be found in West Vancouver
($29.9 million), Greater Toronto ($23
million in Bridle Path), Vancouver
Westside’s Shaughnessy area ($22 million)
and Victoria ($19 million).
RE/MAX is
Canada’s leading real estate organization
with over 17,500 sales associates situated
throughout its more than 680
independently-owned and operated offices
across the country. The RE/MAX franchise
network, now in its 37th year, is a global
real estate system operating in 80
countries. Over 6,450 independently-owned
offices engage over 92,000 member sales
associates who lead the industry in
professional designations, experience and
production while providing real estate
services in residential, commercial,
referral, and asset management.
