Luxury home sales plummet

vista

Luxury home sales plummet
Slow economy blamed for drop
7 G7 C( \- G$ \( I: [The Edmonton Journal
( o1 t+ [4 W$ }) e% }7 c. nPublished: 2:33 am
EDMONTON - 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.
- L8 C! O4 S/ d1 v. |! ?% P; X! t
" Q: K$ u6 }! k9 Q/ V+ BReal 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.

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.


& H7 W& p3 L' Q5 \Email to a friend
4 e; A3 D( j% }9 i' G
Printer friendly
0 m8 y7 ?8 s0 ]6 ~7 V9 uFont:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.

: |4 u. E( u$ o1 T( t( Z/ n! ^/ BThe 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.
/ L9 g- X! {4 M! m; D9 b
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 $1 million or more, sales dropped 17 per cent to 258 from 312 units. And there's lots of choice for high-end buyers -- 395 properties are currently listed.
: A9 X: m) i6 ?# \# L1 }1 Z
Besides Edmonton and Calgary, sales fell in Toronto, Hamilton and Kelowna. Those cities bucked the national trend that saw sales rise in 10 of the 15 major Canadian markets tracked.
( n, {: |/ N) k" R! ^  N
/ ]6 _  W! K" d$ @4 }& `However, the real estate organization said strength in this market segment is not expected to last.

6 i+ b: D1 K1 f) ^; u"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 f- Q7 T* c0 b# k2 q1 b$ T, j
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.
' k/ p9 [( A/ ]7 Z
4 _2 k% T4 B5 mElton 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.
3 w- q( ~6 q1 [5 u+ N+ f
; z! G5 F* ?% V0 D0 h) o" LEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.

6 M2 b. D/ f+ C9 e2 m! 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.
1 Z3 R( A. D9 T0 C, H  `8 K
7 P! r; P* \. K0 A  M, R" O  L0 `5 t


© The Edmonton Journal 2008

依勒特

招聘