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Luxury home sales plummet
4 A! S m& _, N3 G C# {* h0 `* sSlow economy blamed for drop4 D* R6 n5 C: ^( S8 h! G
The Edmonton Journal
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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.2 @8 L( y: ]3 c6 K' s
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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.5 C' J& I- D- g' O) K! ^5 @
" n& P# F/ T. `3 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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. h3 M5 ]; s8 H! h( {" AFont:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.
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; M, a4 @, [! r" Y2 T8 A' r8 fThe 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.& r5 Y/ G( M8 R
/ K: d3 U2 o( D- w# IRe/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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In Calgary, where Re/Max defines a luxury home as costing $1 million or more, sales dropped 17 per cent to 258 from 312 units. And there's lots of choice for high-end buyers -- 395 properties are currently listed.
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D: R$ u1 a& b5 r6 b. o* RBesides 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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4 m3 `7 d) O2 L+ a& n7 Q; ?However, the real estate organization said strength in this market segment is not expected to last.0 ^* M& M8 W) P8 Y |/ D# ~( v) N
. G. p' |/ W- I! k" S2 V0 ?"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.; K" C) l; D: W* ^/ o; H/ g
9 d( ]9 h- c* t) t G+ }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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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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Each market has a different price point that marks what Re/Max defined as the start of the luxury-home category.! }" w2 G. Q- P; w2 S
; f& l0 ~( r6 f; d5 ~8 x# l2 Y r( A7 NIt 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./ n3 a" k z. \5 O" c
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3 _9 g+ n8 T! a( ~© The Edmonton Journal 2008 |
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