Luxury home sales decline
Posted On:
2008-09-26
Luxury home sales decline
Luxury homes sales are up in many markets across Canada, but not in the Central Okanagan.
The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country, found sales declined in Kelowna, Calgary, Edmonton, Hamilton-Burlington and Toronto during the first seven months of the year.
Upswings in sales activity was reported in Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St. John’s.
“In two-thirds of the markets we surveyed, demand for upscale homes surpassed peak levels reported last year,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
“However, with supply edging higher in most major centres and few markets reporting tight inventory levels, 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.”
Michael Polzler, Executive Vice President and Regional Director for RE/MAX Ontario-Atlantic Canada, says although the top-end of the market represents less than five per cent of total sales, activity is generally a gauge of overall market conditions.
“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. That being said, we feel uncertainty in financial markets both here and abroad will give purchasers cause for concern in the immediate future,” says Polzler.
The Upper-End report shows an 11 per cent decrease in sales of Kelowna homes in the $1 million price point with 63 being sold so far this year as compared to 71 during 2007.
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The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country, found sales declined in Kelowna, Calgary, Edmonton, Hamilton-Burlington and Toronto during the first seven months of the year.
Upswings in sales activity was reported in Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St. John’s.
“In two-thirds of the markets we surveyed, demand for upscale homes surpassed peak levels reported last year,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
“However, with supply edging higher in most major centres and few markets reporting tight inventory levels, 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.”
Michael Polzler, Executive Vice President and Regional Director for RE/MAX Ontario-Atlantic Canada, says although the top-end of the market represents less than five per cent of total sales, activity is generally a gauge of overall market conditions.
“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. That being said, we feel uncertainty in financial markets both here and abroad will give purchasers cause for concern in the immediate future,” says Polzler.
The Upper-End report shows an 11 per cent decrease in sales of Kelowna homes in the $1 million price point with 63 being sold so far this year as compared to 71 during 2007.