Luxury home sales plummet

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Luxury home sales plummet
5 {, _: Y; U' f' d! Z" uSlow economy blamed for drop
The Edmonton Journal
Published: 2:33 am
- b. j4 `' E& u7 NEDMONTON - 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.

  ]0 P0 K+ S7 ]; o2 l$ ZSales 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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" a$ @" V* x+ n& b4 G/ Y# G- ?( nFont:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.
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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.

1 {3 v; h% z. k+ _Re/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.

; Q% D8 q) V. V( ^9 b: s+ h2 UIn 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.

  w2 ~( j& a$ r- d1 {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.

' ?4 W$ L$ `# P/ Y" H6 F& j0 tHowever, the real estate organization said strength in this market segment is not expected to last.

; _( M0 y/ O2 e1 K"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.
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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."
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. \" d) d& B! P4 f' }* yIn 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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/ v5 T% X+ v1 U6 P; ~) p1 g9 rEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.

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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: _) g7 G0 L% j© The Edmonton Journal 2008

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