Luxury Homes in High Demand as Sales Increase in Canada's Largest Cities According to RE/MAX

Sales of $3 million-plus homes increase 119 per cent in Toronto and 79 per cent in Vancouver

LAVAL, QC, Sept. 1, 2015 /CNW Telbec/ - Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Montreal and Victoria in the first seven months of the year. Calgary was the exception; sales in the $1 million range decreased 28 per cent over the same period in 2014.

In Canada's two largest luxury markets, sales of homes $3 million and up saw impressive gains. In the Greater Toronto Area, sales in this range increased by 119 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31. The increase of sales at the top-end of the luxury market can be attributed to two factors. One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that has led to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets. 

In Calgary, a healthy 2.3 to 2.5 months' supply of inventory in the $1 million plus range has brought a more balanced market to the city.

"What we're seeing in Calgary is that luxury buyers are not witnessing a notable decrease in prices, but there is less pressure and stress for buyers during the negotiation process," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "We're seeing that normal conditions like home inspection and financing, which were rarer when buyers were frequently in competing offer situations, have become part of the normal negotiation process again. Buyers don't have to make up their minds on the spot."

RE/MAX brokers and agents reported that foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets in the first half of 2015. These buyers, primarily from China, are typically families with children who are relocating to Canada to live. They've chosen Canada for its stable economy and high quality of life, and their real estate decisions are strongly influenced by proximity to good schools.

"While there has been a lot of concern about foreign investors in Canada's housing market, we're seeing that the foreign buyers in our major luxury markets are living in their properties," said Gurinder Sandhu, Executive Vice President, RE/MAX INTEGRA Ontario-Atlantic Canada Region. "These buyers see Canada as a great place to live, invest and raise their families."

Although foreign buyers are less active in Montreal's luxury market compared to Toronto and Vancouver, RE/MAX brokers and agents have reported a substantial increase in foreign buyers in Montreal during the first seven months of 2015. Its relative affordability, aided by the strength of the yuan compared to the Canadian dollar during this period, make the city a good value proposition for foreign buyers. "With few exceptions, Canada's prestige real estate market is posting surprising results year after year, said Sylvain Dansereau, Executive Vice-President RE/MAX Québec. This is particularly evident in the Greater Montreal area, where prestige homes remain affordable and accessible to Montrealers and those seeking to move there with their family. This trend stems partly from the growth of the city's tech industry, which attracts professionals who can afford this type of property."

In regions where condominiums are a significant part of the luxury market, sales of condominiums priced over $1 million rose year-over-year. Montreal, Toronto and Vancouver all saw an increase of high-end condominium sales. While demand in the luxury freehold market was driven primarily by families, luxury condominium buyers tend to be Baby Boomers who are downsizing during retirement. These buyers tend to spend part of their time in a second home or travelling, and choose condominiums for access to luxury amenities without the maintenance required of a house.

Based on interviews with RE/MAX brokers and associates, luxury market trends seen in Canada's major markets during the first seven months of the year are expected to continue through the end of 2015. For more information, please visit the 2015 RE/MAX Spotlight on Luxury report www.remax.ca

 


Number of properties sold year-over-year

(January 1 to July 31)

Highest sold

(January 1 to July 31)


1M+

2M+

3M+




2015

2014

YOY

2015

2014

YOY

2015

2014

YOY

2015

2014

Greater Toronto Area

7,249

4,684

55%

1,098

722

52%

379

173

119%

$9,500,000

$11,480,000

Freehold

6,929

4,458

55%

1,042

687

52%

259

164

58%

$9,500,000

$11,480,000

Condominium

320

226

42%

56

35

60%

20

9

n/a*

$5,800,000

$5,590,000

Oakville (Freehold and
Condominium)

401

299

34%

52

54

-4%

10

17

n/a*

$8,800,000

$6,500,000

Greater Vancouver

2,649

1,894

40%

1,175

793

48%

572

319

79%

$17,550,000

$16,600,000

Freehold

2,248

1,593

41%

1,082

726

49%

532

296

80%

$17,550,000

$12,280,000

Condominium

401

301

33%

93

67

39%

40

23

74%

$7,750,000

$16,600,000

Montreal

380

307

24%

41

29

41%

14

9

n/a*

$6,760,000

$6,700,000

Freehold

309

257

20%

24

25

-4%

12

7

n/a*

$6,760,000

$6,700,000

Condominium

45

31

45%

3

4

n/a*

2

2

n/a*

$3,300,000

$4,900,000

Calgary (Freehold and
Condominium)

517

715

-28%

48

77

-38%

14

17

n/a*

$3,000,000

$3,800,000

Victoria

243

172

41%

37

27

37%

10

10

n/a*

$3,600,000

$5,388,000

Freehold

230

138

67%

36

24

50%

9

7

n/a*

$3,000,000

$5,388,000

Condominium

13

34

n/a*

1

3

n/a*

1

3

n/a*

$3,600,000

$5,000,000

*Sample size not large enough for year-over-year comparison

 

About the RE/MAX Network:

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence.

Over 100,000 agents provide RE/MAX a global reach of nearly 100 countries.

RE/MAX, LLC, one of the world's leading franchisors of real estate brokerage services, is a wholly-owned subsidiary of RMCO, LLC, which is controlled and managed by RE/MAX Holdings, Inc. (NYSE: RMAX).

With a passion for the communities in which its agents live and work, RE/MAX is proud to have raised more than $150 million for Children's Miracle Network Hospitals® and other charities.

For more information about RE/MAX, to search home listings or find an agent in your community, please visit www.remax-quebec.com.

Forward-Looking Statements 
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "intend," "expect," "estimate," "plan," "outlook," "project" and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding the future performance of the housing market, the Company's financial and operational outlook, the Company's belief that business fundamentals remain strong, as well as other statements regarding the Company's strategic and operational plans. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. Such risks and uncertainties include, without limitation, (1) changes in business and economic activity in general, (2) changes in the real estate market, including changes due to interest rates and availability of financing, (3) the Company's ability to attract and retain quality franchisees, (4) the Company's franchisees' ability to recruit and retain agents, (5) changes in laws and regulations that may affect the Company's business or the real estate market, (6) failure to maintain, protect and enhance the RE/MAX brand (7) fluctuations in foreign currency exchange rates, as well as those risks and uncertainties described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operation" in the most recent Form 10-K filed with the Securities and Exchange Commission ("SEC") and similar disclosures in subsequent reports filed with the SEC, which are available on the investor relations page of the Company's website at www.remax.com and on the SEC website at www.sec.gov.  Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. 

 

SOURCE RE/MAX Quebec

For further information: Jessica Lavoie, RE/MAX Québec Inc., 450 668-7743, Jessica.lavoie@remax-quebec.com; Angélique Lecesve, Massy Forget Langlois Public Relations, 514 842-2455 ext. 21, angelique@mflrp.ca

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