Luxury home sales plummet

vista

Luxury home sales plummet
Slow economy blamed for drop
The Edmonton Journal
1 u4 j5 H$ p. k6 i# f$ E, `: sPublished: 2:33 am
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.
6 x3 m, x6 ~. R1 ]% c; y* R
( c7 ]% m2 G; n. V! y1 }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.

Sales 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.


* o8 p) j. [; qEmail to a friend

" k4 b+ D* f8 F& \Printer friendly
9 i8 j! }) Z" n3 A' U2 H8 P+ P. m/ JFont:****Re/Max blamed a slowing economy and overheated real estate market for the downward trend.
$ }0 x+ U4 T4 c! r( S
The 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 $1.39-million property in Strathcona is the highest price condo on the market.
: h7 C+ |$ o3 Y
Re/Max predicts prices will soften this year and a rebound isn't expected until late 2009 when excess housing inventory is sold.

7 @2 ?4 ~0 q% o: k- g+ R8 C6 {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.

( B& c" c# P& C3 A0 K3 C' VBesides 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.

4 ?$ H: L3 Y! j" K5 R+ eHowever, the real estate organization said strength in this market segment is not expected to last.

  E  {4 V5 @/ k5 H, {"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.

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.

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."
. f3 ~& U6 e, F$ J; \
# E8 m& ^! c* ^8 M7 nIn 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.

" _' H5 @8 d4 q5 ]' @( b+ jEach market has a different price point that marks what Re/Max defined as the start of the luxury-home category.

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.
$ ]! q3 V) b4 s$ c# ^



5 a) W. O% a: z© The Edmonton Journal 2008

依勒特

招聘