New records set in just over 60 per cent of markets in the first quarter
LAVAL, QC, May 16, 2012 /CNW Telbec/ - The Canadian appetite for all things luxury continues to fuel demand for high-end housing, with first quarter 2012 sales well ahead of 2011 figures for the same period in most markets across the country, according to a report released today by RE/MAX.
The Upper-End Report found that 81 per cent (13) of the 16 major Canadian centres examined—including Greater Montreal, Quebec City, Victoria, Edmonton, Calgary, Regina, Saskatoon, London-St. Thomas, Kitchener-Waterloo, Hamilton-Burlington, Greater Toronto, Ottawa, and Halifax-Dartmouth—posted an increase in homebuying activity, with the vast majority reporting double-digit appreciation. Records were set for upper-end sales in ten markets in Quebec, Saskatchewan, Ontario, Nova Scotia—including Greater Montreal and Quebec City.
"The strength of the upper-end is underpinned by solid fundamentals," says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec. "Most markets remain largely balanced across the board, with stable or modest price growth forecast in the luxury segment. Inventory levels have played a role in some multiple offer activity, with shortages notable in Montreal, throughout Ontario, and Winnipeg. While selection may be adequate in other markets, the demand and competition for quality stands out. Buyers at this price level are very discriminating. They are raising the bar nationwide, altering the Canadian housing landscape in the process."
The greatest percentage increase was reported in Regina, where first quarter sales of luxury homes priced over $500,000 climbed 56 per cent year-over year (50 units vs. 32 units). Quebec City placed second, posting a 50 per cent (48 units vs. 32 units) upswing in activity, while Toronto followed closely with a 49 per cent gain (412 units vs. 277 units). The mid-sized markets of London-St. Thomas (43 per cent) and Kitchener-Waterloo (39 per cent) rounded out the Top Five—demonstrating that upper-end enthusiasm is not exclusive to Canada's larger centres.
"Canadians recognize and appreciate the stability of real estate," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "Given volatility in other areas, housing has emerged as a blue-chip asset among the country's most affluent individuals. The capital gains exempt status ups the appeal, particularly as we see ongoing fluctuations in stocks and uncertainty in Europe. All the variables have come together to support an upper-end market firing on all cylinders."
The report also noted that although the top end of the market represents only a small proportion of overall residential sales, when measured in terms of dollar volume, luxury sales are a much larger part of the equation. As such, the strong momentum out of the gate speaks to the overall confidence in real estate. Several factors have worked in tandem to fuel the surge in demand for high-end properties in 2012, among them:
"While the ranks of the rich expand in both population and wealth, their impact on the Canadian residential landscape is undeniable," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Their confidence abounds from coast-to-coast, irrespective of price point. Starting prices range from a low of $500,000 in markets like St. John's and Halifax-Dartmouth to a high of $2 million in Greater Vancouver, and affluent homebuyers are still prepared to up the ante—choosing to further renovate or altogether teardown and custom build to suit their needs."
Highlights:
UPPER-END RESIDENTIAL SALES - January 1 to March 31 | ||||||||||||||||
Market |
Price Point |
Sales '07 |
Sales '08 |
Sales '09 | Sales '10 | Sales '11 | Sales '12 | % +/- | ||||||||
Greater Vancouver | $2 million | 97 | 181 | 80 | 261 | 573 | 393 | -31% | ||||||||
- Vancouver Westside | $3 million | 20 | 38 | 11 | 64 | 144 | 89 | -38% | ||||||||
- West Vancouver | $2 million | 31 | 63 | 20 | 45 | 111 | 86 | -22.5% | ||||||||
- White Rock/South Surrey | $1.3 million | 26 | 24 | 17 | 37 | 102 | 57 | -44% | ||||||||
Victoria | $1 million | 45 | 58 | 20 | 75 | 53 | 56 | 6% | ||||||||
Edmonton | $750,000 | n/a | 52 | 22 | 53 | 49 | 51 | 4% | ||||||||
Calgary | $1 million | 124 | 86 | 35 | 67 | 106 | 115 | 8.5% | ||||||||
Regina | $500,000 | n/a | n/a | n/a | 16 | 32 | 50 | 56% | ||||||||
Saskatoon | $500,000 | n/a | n/a | n/a | n/a | 67 | 81 | 21% | ||||||||
Winnipeg | $500,000 | 6 | 16 | 9 | 23 | 68 | 58 | -15% | ||||||||
London-St. Thomas | $500,000 | 27 | 25 | 16 | 36 | 30 | 43 | 43% | ||||||||
Kitchener-Waterloo | $750,000 | n/a | n/a | n/a | n/a | 18 | 25 | 39% | ||||||||
Hamilton-Burlington | $750,000 | 32 | 38 | 15 | 46 | 54 | 67 | 24% | ||||||||
Greater Toronto | $1.5 million | 157 | 157 | 66 | 259 | 277 | 412 | 49% | ||||||||
- Central Core | $2 million | 52 | 41 | 23 | 81 | 89 | 112 | 26% | ||||||||
- West End | $1.5 million | 15 | 9 | 3 | 21 | 21 | 18 | -14% | ||||||||
- Mississauga | $1.5 million | 9 | 15 | 6 | 24 | 8 | 30 | 275% | ||||||||
- Oakville | $1.5 million | n/a | 24 | 6 | 18 | 24 | 31 | 29% | ||||||||
- Vaughan/Markham/Richmond Hill | $1.5 million | n/a | n/a | n/a | n/a | 35 | 54 | 54% | ||||||||
Ottawa | $750,000 | 22 | 37 | 17 | 48 | 73 | 86 | 18% | ||||||||
Quebec City | $500,000 | 19 | 15 | 20 | 34 | 32 | 48 | 50% | ||||||||
Greater Montréal | $750 000 | 109 | 115 | 94 | 194 | 197 | 261 | 32.5% | ||||||||
- Montréal Island | $1 million | 38 | 50 | 25 | 73 | 79 | 84 | 6% | ||||||||
Halifax-Dartmouth | $500,000 | 22 | 23 | 24 | 39 | 52 | 66 | 27% | ||||||||
St. John's | $500,000 | 1 | 4 | 6 | 17 | 18 | 16 | -11% | ||||||||
Source: RE/MAX, Local Real Estate Boards |
RE/MAX is Canada's leading real estate organization with over 18,700 sales associates situated throughout its more than 720 independently-owned and operated offices in Canada. The RE/MAX network, now in its 38th year, is a global real estate system operating in 87 countries, with over 6,200 independently-owned offices and over 87,000 member sales associates. RE/MAX realtors lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.
http://www.remax-quebec.com/en/static/rapportHautDeGamme2012.rmx
PDF available at: http://stream1.newswire.ca/media/2012/05/16/20120516_C7516_DOC_EN_13706.pdf
Jessica Lavoie
RE/MAX Québec Inc.
450.668.7743
Eva Blay/Charlene McAdam
Point Blank Communications
416.781.3911
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