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Luxury home sales plummet4 `/ [9 k n# q: x) {
Slow economy blamed for drop, W2 w4 L% b% S( V* m9 Y
The Edmonton Journal3 i9 x& D/ s) i. U" l X) K; a
Published: 2:33 am
: i" u8 J5 O, Z% @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.
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% k. ]: R7 l, y* {Real estate group Re/Max said 110 homes priced at $850,000 or more sold in the period during 2007 but the number dropped to 67 this year.; {. J* k3 n, q4 ~$ H- m5 \
4 O, w0 I" o y- fSales over the $1-million mark dipped to 40 from 45. There are currently 218 properties for sale that top the $850,000-mark and average number of days on the market jumped to 72 in 2008 from 59 last year.- W& b2 \& A$ n
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Font:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.
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! d8 D' _1 `) i" 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 $1.39-million property in Strathcona is the highest price condo on the market. x `3 X" a: D7 h3 M! ~
' }5 o# v) k% R! t _/ t; L9 n7 wRe/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.. l* V$ K: h! ~( l2 [, o
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In Calgary, where Re/Max defines a luxury home as costing $1 million or more, sales dropped 17 per cent to 258 from 312 units. And there's lots of choice for high-end buyers -- 395 properties are currently listed.8 R+ H6 T( h2 `
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Besides Edmonton and Calgary, sales fell in Toronto, Hamilton and Kelowna. Those cities bucked the national trend that saw sales rise in 10 of the 15 major Canadian markets tracked.
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However, the real estate organization said strength in this market segment is not expected to last.
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3 Q# w: y C; e" u4 N"The market for luxury homes is usually the first to show pressure cracks, but the reverse is actually true this year, with pent-up demand (due to trade-up activity), less speculation and job transfers all factors contributing to stability in this segment," Michael Polzler, Re/Max's executive vice-president for Ontario and Atlantic Canada, said in statement.
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+ u- }. C- M% V; Z# y6 yBut financial market conditions and more higher-end homes being put up for sale are expected to curtail both sales volumes and price levels in the coming months, Re/Max said.
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8 N" [1 r5 d5 Z- {+ mElton Ash, Re/Max's executive vice-president for Western Canada, said, "We are seeing a return to more balanced conditions. This situation is expected to have an impact on high-end values in coming months, especially in areas that have experienced consistent double-digit growth.") Q5 u4 ?4 }) q$ B3 B) G
% [8 c; b. ]1 {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.* U. a6 v1 X3 G& G) X( K2 a5 l: m
' G( M8 ]; S- sEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.0 s3 C ^ t7 D6 B- X
, A& L- j9 t0 w& F: _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./ l, ~0 {1 z' f8 O- p
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© The Edmonton Journal 2008 |
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