Luxury home sales plummet

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Luxury home sales plummet
6 p* c" Q6 k" @4 i  v% xSlow economy blamed for drop
1 i5 @6 H2 S1 U. n2 }( `, z) _The Edmonton Journal
Published: 2:33 am
/ ^# [& M; L' o# K2 ]9 {6 J" pEDMONTON - 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.
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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.
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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.

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" n0 u8 X" H+ ]  {9 U* K8 sFont:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.

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.
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Re/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.
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+ {1 @" c9 C  EIn 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.
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4 i" {( u7 \7 U8 K3 c5 \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.
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; M  Y1 p( p* B( ^, b2 b9 K( SHowever, the real estate organization said strength in this market segment is not expected to last.
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"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.
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* P: Z& V+ |0 q: Q: V5 ]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.

8 E7 v# E8 d9 s9 \; S, aElton 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."

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.
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& P. g7 v7 F: q9 r# N3 K, O" G( sEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.
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/ N% b/ O& H  a+ J* x+ z1 L$ g$ |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.

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6 E% a% |$ \  O2 R$ k; P3 `© The Edmonton Journal 2008

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