Luxury Homes in High Demand as Sales Increase in Canada's Largest Cities According to RE/MAX

Sales of $3 million-plus homes increase 61 per cent in Toronto and 79 per cent in Vancouver

TORONTO, KELOWNA, BC and LAVAL, QC, Sept. 1, 2015 /CNW/ - Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Montreal and Victoria in the first seven months of the year. Calgary was the exception; sales in the $1 million range decreased 28 per cent over the same period in 2014.

In Canada's two largest luxury markets, sales of homes $3 million and up saw impressive gains. In the Greater Toronto Area, sales in this range increased by 61 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31. The increase of sales at the top-end of the luxury market can be attributed to two factors. One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that has led to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets. 

In Calgary, a healthy 2.3 to 2.5 months' supply of inventory in the $1 million plus range has brought a more balanced market to the city.

"What we're seeing in Calgary is that luxury buyers are not witnessing a notable decrease in prices, but there is less pressure and stress for buyers during the negotiation process," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "We're seeing that normal conditions like home inspection and financing, which were rarer when buyers were frequently in competing offer situations, have become part of the normal negotiation process again. Buyers don't have to make up their minds on the spot."

RE/MAX brokers and agents reported that foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets in the first half of 2015. These buyers, primarily from China, are typically families with children who are relocating to Canada to live. They've chosen Canada for its stable economy and high quality of life, and their real estate decisions are strongly influenced by proximity to good schools.

"While there has been a lot of concern about foreign investors in Canada's housing market, we're seeing that the foreign buyers in our major luxury markets are living in their properties," said Gurinder Sandhu, Executive Vice President, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "These buyers see Canada as a great place to live, invest and raise their families."

Although foreign buyers are less active in Montreal's luxury market compared to Toronto and Vancouver, RE/MAX brokers and agents have reported a substantial increase in foreign buyers in Montreal during the first seven months of 2015. Its relative affordability, aided by the strength of the yuan compared to the Canadian dollar during this period, make the city a good value proposition for foreign buyers.

In regions where condominiums are a significant part of the luxury market, sales of condominiums priced over $1 million rose year-over-year. Montreal, Toronto and Vancouver all saw an increase of high-end condominium sales. While demand in the luxury freehold market was driven primarily by families, luxury condominium buyers tend to be Baby Boomers who are downsizing during retirement. These buyers tend to spend part of their time in a second home or travelling, and choose condominiums for access to luxury amenities without the maintenance required of a house.

Based on interviews with RE/MAX brokers and associates, luxury market trends seen in Canada's major markets during the first seven months of the year are expected to continue through the end of 2015. For more information, please visit the 2015 RE/MAX Spotlight on Luxury report http://rem.ax/1NMEGaI.

	Number of properties sold year-over-year (January 1 to July 31)									Highest sold (January 1 to July 31)
	1M+			2M+			3M+
	2015	2014	YOY	2015	2014	YOY	2015	2014	YOY	2015	2014
Greater Toronto Area	7,249	4,684	55%	1,098	722	52%	279	173	61%	$9,500,000	$11,480,000
Freehold	6,929	4,458	55%	1,042	687	52%	259	164	58%	$9,500,000	$11,480,000
Condominium	320	226	42%	56	35	60%	20	9	n/a*	$5,800,000	$5,590,000
Oakville (Freehold and Condominium)	401	299	34%	52	54	-4%	10	17	n/a*	$8,800,000	$6,500,000
Greater Vancouver	2,649	1,894	40%	1,175	793	48%	572	319	79%	$17,550,000	$16,600,000
Freehold	2,248	1,593	41%	1,082	726	49%	532	296	80%	$17,550,000	$12,280,000
Condominium	401	301	33%	93	67	39%	40	23	74%	$7,750,000	$16,600,000
Montreal	380	307	24%	41	29	41%	14	9	n/a*	$6,760,000	$6,700,000
Freehold	309	257	20%	24	25	-4%	12	7	n/a*	$6,760,000	$6,700,000
Condominium	45	31	45%	3	4	n/a*	2	2	n/a*	$3,300,000	$4,900,000
Calgary (Freehold and Condominium)	517	715	-28%	48	77	-38%	14	17	n/a*	$3,000,000	$3,800,000
Victoria	243	172	41%	37	27	37%	10	10	n/a*	$3,600,000	$5,388,000
Freehold	230	138	67%	36	24	50%	9	7	n/a*	$3,000,000	$5,388,000
Condominium	13	34	n/a*	1	3	n/a*	1	3	n/a*	$3,600,000	$5,000,000

Source: Historical values are sourced from CREA or local board statistics

*Sample size not large enough for year-over-year comparison

About the RE/MAX Network:

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence.

Over 100,000 agents provide RE/MAX a global reach of nearly 100 countries.

RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE:RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax.ca.

About RE/MAX INTEGRA and RE/MAX INTEGRA, Ontario-Atlantic Canada      

RE/MAX INTEGRA, founded in 1980, is a privately held company by Canadian entrepreneurs. With regional headquarters in Toronto, Boston, Minneapolis, Zug, and Vienna, RE/MAX INTEGRA represents nearly a third of all RE/MAX Sales Associates worldwide. RE/MAX INTEGRA was founded on the premise of providing outstanding service and support both at the regional level and to the end consumer.

The Ontario-Atlantic Canada region, is driving towards 10,000 quality Associates; The US regions — New England and the Mid West (including the following states: Minnesota, Wisconsin and Indiana) – account for more than 6,300 Associates with over 2,600 and 3,600 Associates respectively; and the European region leads with more than 12,000 Associates.

For more information about RE/MAX INTEGRA, visit www.remaxintegra.com. 

Forward-Looking Statements 
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. 

SOURCE RE/MAX Ontario-Atlantic Canada

To coordinate interviews, please contact: Western Canada, Wade Paterson, O. 1-800-563-3622; Grace Hon, O. 604-688-2549, C. 604-839-6770, E: [email protected]; Ontario and Atlantic Canada, Shelby Schneider, O. 905-542-2400; Rachael Factor, O. 416-645-3660, C. 416-460-5744, E: [email protected]