Rags to Riches to Real Estate

    - Nouveau riche, not old money driving high-end home sales, Royal LePage
    report -

    TORONTO, May 15 /CNW/ - Good old-fashioned hard work, not birthright, is
the key to unlocking fortune and the front door of a new luxury home,
according to the 2007 Carriage Trade Luxury Properties Report released today
by Royal LePage Real Estate Services. Given that the unit sales of high-end
homes in almost all cities surveyed increased significantly year-over-year,
Canadians appear to be working harder than ever.
    According to the 2007 Carriage Trade Luxury Properties Poll (conducted by
Ipsos Reid), of high net worth Canadians, almost half (46%) cite hard work as
the main driver to attaining wealth, followed by the drive to succeed (27%)
and a higher education (18%). Only four per cent (4%) of respondents chalk
their success and their financial stability to being born into the right
family, while a mere one per cent (1%) attribute it to plain old luck.
    The 2007 Carriage Trade Luxury Properties Report includes a market
analysis of trends and activity in eight major cities across Canada, combined
with a national Ipsos Reid poll that measures attitudes, upbringing and
beliefs of high net worth Canadians, as defined as individuals with assets of
at least $250,000 (excluding real estate) and a primary residence valued at a
minimum of $500,000.
    Regional variances were observed across the country with the largest
increase in unit sales occurring in the nation's capital, Ottawa, followed by
energy-rich Alberta, as measured by local real estate boards. Increases of
more than 200 per cent in Ottawa are due to a large pool of international
buyers and local executives and professionals. The number of high-end home
sales rose by 71 per cent in Edmonton and 38 per cent in Calgary, fuelled
largely by in-migration of executives in the oil and gas sector, as well as
homeowners trading up.
    "Luxury living is no longer the exclusive domain of a few. Buoyant
economic conditions and confidence in the market going forward have ignited a
growing passion for investing in luxury property among an increasing number of
Canadian families. Consequently, homes in this market niche have been trading
briskly, and this has put upward pressure on prices," said Phil Soper,
president and CEO, Royal LePage Real Estate Services. "The poll findings
reveal that real estate in the Carriage Trade market is both sought after and
attainable for hard working people across the country."

    Rags to Riches

    Rags to riches stories are being played out in the kitchens of some of
Canada's best neighbourhoods. The poll results revealed that the majority of
the high net worth individuals surveyed started from modest beginnings. When
asked, "What was your economic status growing up?" only three per cent (3%) of
respondents reported they were raised in wealthy/affluent households, while 79
per cent of respondents came from lower middle class and middle class
upbringings. Four per cent (4%) of wealthy homeowners have risen out of
poverty and now live in a home worth at least $500,000.

    Home Sweet Homes

    When it comes to the value of primary residences, 12 per cent of high net
worth Canadians live in homes with price tags starting at $1 million, while
almost half (47%) of respondents live in properties valued from $600,000 to
$999,000.
    Added Soper: "Prosperous Canadians see real estate as an important
element in their investment portfolios. Demand for well-appointed properties
remains strong with a trend of affluent Canadians owning more than one home.
In fact, one-quarter (25%) of wealthy homeowners own two properties, and six
per cent (6%) own three residences while two per cent (2%) own more than five
properties."
    Success seems to transcend sectors with luxury property owners citing a
spectrum of occupations including entrepreneurs (13%), CEOs and senior
executives (10%), medicine (10%), sales (7%) and law (3%). The poll found that
32 per cent of high net worth homeowners have already retired and can now
enjoy the fruits of their labour.

                               REPORT FINDINGS

    -------------------------------------------------------------------------
                         Luxury Home Market Summary
    -------------------------------------------------------------------------
                                            Units Sold   Units Sold
          Market              Price           Q1 2007      Q1 2006   % Change
    -------------------------------------------------------------------------
    Halifax                 $600,000 +           8           10         -20%
    -------------------------------------------------------------------------
    Montreal                $900,000 +          56           49          14%
    -------------------------------------------------------------------------
    Ottawa                  $750,000 +          23            7         229%
    -------------------------------------------------------------------------
    Greater Toronto       $1,000,000 +         434          357          22%
    -------------------------------------------------------------------------
    Winnipeg                $500,000 +          11            8          38%
    -------------------------------------------------------------------------
    Calgary               $1,000,000 +         130           94          38%
    -------------------------------------------------------------------------
    Edmonton                $950,000 +          12            7          71%
    -------------------------------------------------------------------------
    Greater Vancouver     $1,000,000 +         673          544          24%
    -------------------------------------------------------------------------
        Source: Data obtained from various real estate boards (REBGV, CREB,
        EREB, WREB, TREB, OREB, GMREB and NSAR)
        Note: The price categories listed above correlate to the price
        criteria for a Carriage Trade home. Carriage Trade is a Royal LePage
        distinction for the most exceptional homes on the market. In Toronto,
        Vancouver, Montreal and Calgary, the home's listing price must also
        be no less than four times the average residential sales price as
        determined by the local real estate board, or $1 million. For homes
        located in all other markets the home's listing price must be three
        times greater than the average residential price as determined by the
        local real estate board.



                             REGIONAL SUMMARIES

    Real estate activity in Halifax's luxury housing market remains stable,
with only slightly fewer sales of properties priced upwards of $600,000
occurring in first quarter 2007, compared to first quarter 2006 (eight versus
10 sales, respectively). The city's south end comprises the majority of luxury
homes, while St. Margaret's Bay, approximately 20 minutes from Halifax is
among the most coveted by purchasers looking for oceanfront homes. The
majority of luxury home purchasers in this area are professionals, such as
doctors or lawyers in their 50s and 60s. While many high-end homeowners are
native to Halifax, there is a growing trend of buyers migrating east from
across the country and from the U.S. and Europe.
    Strong consumer confidence and a robust economy have contributed to
growth in Montreal's luxury home market with sales of properties priced above
$900,000 rising 14 per cent in the first quarter, year-over-year, to 56 units
in 2007 from 49 units in 2006. The strong growth seen in the first quarter is
expected to persist throughout 2007. Luxury home buyers are typically between
the ages of 35 and 60, are highly successful professionals or executives, and
have a keen eye for quality and value. Some of Montreal's most sought-after
areas include Westmount and Mont Royal.
    In Ottawa, about a third of all buyers in the luxury market are from
overseas. The city's unique combination of having the cultural, sports and
entertainment attractions of a large city, as well as a relaxed, almost small
town feel has attracted many international buyers. Many of these buyers are
senior executives transplanted to Ottawa, while others have discovered the
city through their travels and are drawn to the city's features and
attractions. The typical luxury homebuyer is between the ages of 45 and 58 and
is a highly successful professional or executive. Sales of luxury homes in
Ottawa priced over $750,000 more than tripled in the first quarter of 2007
compared to the same period last year, and this trend of strong growth is
expected to continue for the rest of the year.
    The number of unit sales priced from $1 million and up increased by 22
per cent (to 434 from 357) in Toronto during first quarter 2007 over first
quarter 2006. Forest Hill and Rosedale are the most sought-after luxury
neighbourhoods in the city's core. The growing majority of houses in these two
tony areas boast completely renovated interiors with the most modern
amenities, while their exteriors reveal a more established, mature look.
Yorkville is home to some of the city's most luxurious condominiums.
Purchasers in the luxury market are typically professional couples in their
40s, 50s and 60s, and are most often trading up from their current luxury
home. The buyer pool in this market also consists of people who have been
transferred in from the U.S. and Europe.
    Backed by a strong economy, the luxury housing market in Winnipeg
remained robust during the first three months of the year, and all signs
indicate that the market will continue to strengthen into 2007. Sales of homes
priced from $500,000 and up rose sharply in Winnipeg during the first quarter.
From January to March, the number of unit sales in the $500,000+ price
category increased by 38 per cent, year-over-year. The typical buyer in the
city's luxury market is a professional couple in their 30s and 40s. High-end
homeowners are typically executives, private business owners, lawyers or
doctors. The most sought after areas for high-end homes include the
established South West neighbourhoods of Lindenwoods and Tuxedo, as well as
Pritchard Farms.
    In Edmonton, sales of homes priced from $950,000 and up increased
significantly during the first quarter of 2007. From January to March, the
number of unit sales in this price range increased by 71 per cent over the
same period last year. Purchasers in the luxury real estate market are
typically 35 to 45 years old with young families, and have achieved their
wealth through their professional careers, as well as inheritances. South West
and West Edmonton are the city's most reputable areas for high-end homes,
while St. Albert and Sherwood Park are bedroom communities in North Edmonton
that boast a large number of luxury properties.
    Fuelled by a robust economy and unwavering in-migration, Calgary's luxury
housing market remained strong during first quarter 2007. Sales of homes
priced from $1 million and up increased by 38 per cent in the city compared to
the same period last year. Steadfast market conditions are expected to
continue, supported by the typically more-active spring and early summer
months. The majority of luxury homebuyers are executives working in the oil
and gas sector, many of whom have been relocated to Calgary. For purchasers in
search of unique properties, luxury homes situated on manmade lakes such as
Lake Bonavista, Lake Bonaventure, Arbour Lake and Auburn Bay are receiving
attention.
    Vancouver remains a strong destination both nationally and
internationally among luxury buyers. In Vancouver, the luxury home market is
firmly in the sellers' favour as frenetic activity and multiple offer
situations continue to characterize the market. Sales of homes priced over
$1 million in Vancouver rose by 24 per cent in the first quarter of 2007 to
673 units from 544 units in the first quarter of 2006. The neighbourhoods of
Point Gray, Dunbar and Kitsilano are most popular among luxury buyers due to
their proximity to the ocean, parks, recreation and great schools.

    Methodology

    For the survey, a representative randomly selected sample of 249 adult
homeowners, whose homes have an estimated value of $500,000 or more, was
interviewed online from April 30 to May 7, 2007. With a sample of this size,
the results are considered accurate to within +/-6.2 percentage points, 19
times out of 20, of what they would have been had the entire adult population
been polled. The margin of error will be larger within regions and for other
sub-groupings of the survey population. These data were weighted to ensure
that the sample's regional and age/sex composition reflects that of the actual
Canadian population according to Census data.

    About Royal LePage

    Royal LePage is Canada's leading provider of franchise services to
residential real estate brokerages, with a network of over 12,600 agents and
sales representatives in 600 locations across Canada operating under the Royal
LePage, Johnston & Daniel, and Realty World brand names. Royal LePage manages
the Royal LePage Franchise Services Fund, a TSX listed income trust, trading
under the symbol "RSF.UN."
    For more information visit www.royallepage.ca.

    About Carriage Trade

    Carriage Trade is an exclusive real estate service from Royal LePage
offering the most distinguished homes in Canada to discerning buyers from
around the world. For a property to qualify as Carriage Trade, it must meet a
series of criteria, the most imperative being location and price. The
residence must be situated in a distinctive, prestigious, sought-after and
exclusive neighbourhood or on prized acreage or land and meet minimum price
requirements.
    For more information visit www.carriagetradeproperties.ca.

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/

For further information: or to schedule an interview with a
spokesperson, please contact: Tiffany Fisher, Mansfield Communications Inc.,
Office Phone: (416) 599-0024, E-mail: tiffany@mcipr.com