Luxury home sales plummet

vista

Luxury home sales plummet
+ c4 C: {5 Q- M2 S8 o2 YSlow economy blamed for drop
* [$ J) V& a* b' Q2 }# G& {0 HThe Edmonton Journal
! G8 f9 @! D8 f# n! |0 C% xPublished: 2:33 am
, M1 p' q$ c4 ^* K) f3 V& [: yEDMONTON - Sales of luxury homes in Edmonton dropped 39 per cent in the first seven months of the year compared to 2007, says a report released Thursday.

Real estate group Re/Max said 110 homes priced at $850,000 or more sold in the period during 2007 but the number dropped to 67 this year.
3 O$ e2 G" W0 A& Y: z
4 K/ ^: F$ e% [8 {Sales over the $1-million mark dipped to 40 from 45. There are currently 218 properties for sale that top the $850,000-mark and average number of days on the market jumped to 72 in 2008 from 59 last year.
$ F: h; \2 x/ p) X
( w  G; W" f( @. A( `; K/ h5 V
Email to a friend

8 _: I7 X! H% sPrinter friendly
Font:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.
7 U, n; K8 z* j) z
The top price for an MLS sale this year was $2.25 million, while the highest-priced listing is a $6.9-million property in Crestwood. A $1.39-million property in Strathcona is the highest price condo on the market.
3 }! J* S$ M; U
Re/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.

' z  i+ [6 V% W' j5 C! F( ?In Calgary, where Re/Max defines a luxury home as costing $1 million or more, sales dropped 17 per cent to 258 from 312 units. And there's lots of choice for high-end buyers -- 395 properties are currently listed.

* g# U( R) T2 t3 j& p5 o, ^Besides Edmonton and Calgary, sales fell in Toronto, Hamilton and Kelowna. Those cities bucked the national trend that saw sales rise in 10 of the 15 major Canadian markets tracked.
% J5 v/ e( ?6 D/ v
However, the real estate organization said strength in this market segment is not expected to last.

! K  d: q3 N5 w8 Z. b! I: D"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," Michael Polzler, Re/Max's executive vice-president for Ontario and Atlantic Canada, said in statement.

, D1 c" t0 F) i7 L0 @, `; }0 dBut financial market conditions and more higher-end homes being put up for sale are expected to curtail both sales volumes and price levels in the coming months, Re/Max said.
* S- ~3 d6 ~) t" P" C
Elton Ash, Re/Max's executive vice-president for Western Canada, said, "We are seeing a return to more balanced conditions. This situation is expected to have an impact on high-end values in coming months, especially in areas that have experienced consistent double-digit growth."
2 Q! M( Y; z3 W# A& u
In terms of growth in upper-end homes sales, Regina saw the most proportionally this year at 306 per cent. Winnipeg was next at 89 per cent, followed by St. John's, N.L., at 78 per cent.

) ]; j) f& d) c, z! R# R: OEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.
4 N3 T7 h1 ?, X. e  n: H1 K% {
It ranges from about $2 million in Greater Vancouver to $1 million in Calgary to $750,000 in Ottawa, and $400,000 in St. John's and Halifax.


' ~$ K9 [1 H) u+ z, y. e- n
1 z2 H& B# C) v0 k7 F
% J" u# y7 ?4 y0 V1 @+ ]) H: y© The Edmonton Journal 2008

依勒特

招聘