Luxury home sales plummet

vista

Luxury home sales plummet
Slow economy blamed for drop
- {0 B; n( \0 F; j$ h  I5 e- ~The Edmonton Journal
; O5 f6 ^9 U) x1 }Published: 2:33 am
/ `1 h; N) B- v9 T4 v- o/ VEDMONTON - 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.

% Y) B8 f& g+ q; cReal 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.
+ h6 e) i) ^* w
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.


" x, y6 u5 _8 E4 `; oEmail to a friend

Printer friendly
& Y5 C( v; m* q  F) J: |  ?Font:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.

5 I+ E6 w# R8 ?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.

Re/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.

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.

2 J9 V; C, q  A0 vBesides 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.
' s! w: J, P; A1 d5 D1 N
However, the real estate organization said strength in this market segment is not expected to last.
, v5 }2 G' p7 K! t, C
8 s" G8 X5 w# _" g4 _" `; R; C"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.
2 q* U) {) f! m" d% H7 ^& l7 k8 `
But 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.
  R. p; h; k$ @( N1 @  K
. e# c+ X' Q1 E9 W  _0 K8 J! ^- dElton 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 D* j8 `1 i& _( y* i
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.
& i  d3 N, x* ?# ^
Each market has a different price point that marks what Re/Max defined as the start of the luxury-home category.

+ g8 |( R5 |# H& q6 O* D8 t. QIt 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.

! z. w* M- z, s5 p
' ^# T" ?+ [% |' N& W' y. l5 B, M
0 V5 P# [( q. K  R  O8 ~" T- N" Y
© The Edmonton Journal 2008

依勒特

招聘