Luxury home sales plummet

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Luxury home sales plummet
Slow economy blamed for drop
6 J* o% c) N4 I6 mThe Edmonton Journal
2 f* m7 _, v& r# B7 U' q0 aPublished: 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.
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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.

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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* i# R8 q( m( Q; e; |Font:****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.

4 K3 S' e/ c+ l% j7 s) k' fRe/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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" b5 L0 D' _# S0 _6 ~; lIn 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.

8 x9 n+ s) N: Y/ d( W. h6 YBesides 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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& Z1 f3 U1 E' _" b3 ]5 hHowever, the real estate organization said strength in this market segment is not expected to last.

1 a' g; v. ]4 Y5 Z  n3 o+ e"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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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.

' Q! c1 ?+ r1 O" Q1 KElton 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."
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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.

8 C: q+ j9 ]( o2 @Each market has a different price point that marks what Re/Max defined as the start of the luxury-home category.
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3 B, p. d& h+ J& z+ w+ X' `1 iIt 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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© The Edmonton Journal 2008

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