For immediate release
Luxury sales experience serious upward momentum
in major Canadian markets, says RE/MAX
Mississauga, ON (September 5, 2007) -- Consistent return on investment has prompted an
unprecedented upswing in luxury home sales in major Canadian centres so far this year,
according to a report released by RE/MAX.
The RE/MAX Upper-End Market Trends Report examined trends and activity in 16 markets
across the country between January and July 2007. Luxury home sales were up over the same
period one-year ago in all markets, with percentage increases ranging from 13 per cent in Victoria
to 521 per cent in Edmonton. Four markets, including Edmonton, Regina, Saskatoon and Ottawa,
reported triple-digit increases while double-digit gains characterized remaining markets. The
report also found that the upper-end price points were under stress in most markets surveyed.
"The consumer appetite for luxury property has been insatiable," says Michael Polzler, Executive
Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Unabated demand
throughout the year has created tight market conditions in a number of blue chip neighbourhoods.
Limited availability of product has, in turn, placed mounting pressure on housing values. As a
result, the million dollar home no longer holds the same cache it once did and in larger markets
such as Vancouver, Calgary, and Toronto, it's simply a starting price."
Year-to-Date (January to July) Unit Sales by Market
Market Upper-End Price Point Unit Sales 2006 Unit Sales 2007 % Increase
Vancouver $2 million 166 249 48
White Rock $1.2 million 73 105 44
Victoria $1 million 128 137 13
Kelowna $1 million 36 59 64
Calgary $1 million 198 311 57
Edmonton $900,000 14 87 521
Saskatoon $500,000 14 60 328
Regina $500,000 2 11 450
Winnipeg $400,000 91 170 86
Greater Toronto Area $1.5 million 395 505 28
Hamilton-Burlington $500,000 342 460 34
Kitchener-Waterloo $500,000 87 111 12
London $500,000 47 62 32
Ottawa $750,000 46 99 115
Halifax $350,000 257 376 46
St. John's $350,000 22 53 57
- moreUpper-
End Report 2007...2
Solid gains in housing values - especially in the top-end of the market - have garnered much
attention. The steady upward trending has attracted a growing number of affluent purchasers who
are taking advantage of both the increased equity and the capital gains exemption for a principle
residence.
"Strong economic performance, especially in Western Canadian provinces, has bolstered
consumer confidence levels to such a degree that purchasers in the upper-end are comfortable
with a million dollar plus investment in real estate," says Elton Ash, Regional Executive Vice
President, RE/MAX of Western Canada. "Recent volatility in the stock market may trigger
further investment in real estate as purchasers move to reallocate their holdings."
Out-of-province and international purchasers are active in most markets surveyed, but locals still
account for the majority of upper-end sales. Benchmark sales, including one home priced at close
to $16 million in Toronto, are occurring with greater frequency and overall, there are more sales
taking place in the very upper reaches of the marketplace this year. In smaller centres,
benchmarks have been set throughout the year and although some, such as Regina, have yet to
report a $1 million sale, the day is nearing.
Upscale condominium sales are also climbing as empty-nesters and retirees up the ante for these
types of property. The most expensive sale to date occurred in Vancouver at close to $5 million,
while the priciest listing carries a price tag of $18.2 million in the same centre.
"It appears that a growing percentage of the population has that kind of money to spend," says
Polzler. "Growth in market capitalization has generated tremendous wealth in recent years - in
fact, both the Dow Jones and S& P 500 reported double-digit growth in 2006. Demand for luxury
goods overall - upscale homes, fine art, collectable cars -- is outpacing demand for everyday
consumables. Inheritance has played a significant role as well, with the download on an estimated
$1 trillion amount already underway."
"When it comes to shelter, these upscale purchasers clearly want it all," says Ash. "Price is really
no obstacle when it comes to creating a legacy."
RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated
throughout its more than 640 independently owned and operated offices across the country. The
RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate
system operating in over 65 countries. More than 7,000 independently owned offices engage
120,000 member sales associates who lead the industry in professional designations, experience
and production while providing real estate services in residential, commercial, referral, relocation
and asset management. For more information, visit: www.remax.ca.
###
For more information:
Christine Martysiewicz Eva Blay/Charlene McAdam/Kim Kofman
RE/MAX Ontario-Atlantic Canada Point Blank Communications
905.542.2400 416.781.3911
