Luxury home sales hold steady in most major markets across the country, says RE/MAX.
Two-thirds of markets surveyed report upswing in the number of upper-end homes sold in 2008.
Kelowna, BC (September 25, 2008)
Luxury home sales have outperformed virtually all other residential price points this year, but activity in the top-end is expected to taper in most major Canadian centres in coming months, according to a report released today by RE/MAX. The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country for the first seven months of 2008 found Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St. John’s all experienced an upswing in sales activity, while declines were noted in Kelowna, Calgary, Edmonton, Hamilton-Burlington, and Toronto.
Also significant is in all but two markets, percentage increases in sales were greatest in the upper-end when compared to the overall residential marketplace in 2008. “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.” 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. Leading the country in terms of percentage increase in luxury home sales are Regina (up 306 per cent); Winnipeg (up 89 per cent); St. John’s (up 78 per cent); Saskatoon (up 72 per cent); Kitchener-Waterloo (up 47 per cent); Ottawa (up 36 per cent); Halifax-Dartmouth (up 20 per cent); London (up 14 per cent); Greater Vancouver (up five per cent); and Victoria (up four per cent).
Solid performance is likely a result of consumer confidence, particularly in provinces like Saskatchewan, Manitoba, Newfoundland, Nova Scotia, and parts of Ontario where solid economic fundamentals helped to bolster the number of homes sold in the upper-end. “Given the transition occurring in most residential real estate markets, upper-end sales remain exceptionally strong,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “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.”
The RE/MAX Upper-End Report also notes serious appreciation in housing values in recent years has pushed upper-end price points to new levels. This is especially so in Western Canada where $2 million is now merely a starting price in Greater Vancouver, while in the tony Westside, that figure is closer to $4 million. Calgary is steady at $1 million this year, but is pushing closer to the $1.5 million benchmark. In Ottawa, where the upper-end price point is currently pegged at $750,000, sales are increasingly occurring over the $1 million mark. Other highlights include:
The most expensive MLS sale in Canada in 2008 occurred in Greater Vancouver with a sticker price of $11.5 million. A property priced at $9 million in Greater Toronto sold in a multiple offer situation for more than $11 million as well. The priciest condominium currently listed for sale on MLS is priced at $14.8 million in Greater Vancouver – reduced from $18 million earlier this year.
The Four Seasons Hotel, currently under construction in Greater Toronto’s Yorkville area, has the most expensive list price in the country - $30 million for a penthouse suite on the 55th floor.
RE/MAX is Canada's leading real estate organization with over 18,000 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage more than 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management.
The 2008 Children’s Charities Grand Prix at the River’s Edge Road Course, Mission Raceway Park. September 20/21, 2008.
Post Race Press Release.
Sept 22nd – Mission, B.C.
The first ever Children’s Charities Grand Prix benefitting the BC Children’s Hospital and The Children’s Wish Foundation took place at the 1.33 mile newly-improved 9 turn River’s Edge Road Course Sunday and what a race it was! The entire weekend was like a game of weather-roulette for the 26 P1 and P2 teams and drivers. The competitive spirits were quite obvious with many of the CCGP drivers and teams out testing on the Friday the 19th in preparation for the ½ hour, $10,000 feature race.
Many ‘unofficial’ very fast times were recorded by a variety of stop watches and on-board timers. Saturday saw the entire CCGP field in action. The skies threatened, but the track stayed dry for both morning practice and afternoon qualifying sessions.
Qualifying saw Andy Pearson (Specialty Engineering/GT1 Camaro) setting the fastest time at a 1:09.527 with Glenn Nixon (Bullet Racing/Porsche 911 TT) posting a very impressive 1:09.778 to round out the front row. Andy was the proud recipient of the ‘Centaur Awards’ Pole Position Plaque. Row two was made up P2 Pole-Winner Collin Jackson (Specialty Engineering/GT3 Nissan 240 SX) with a blazing fast time of 1:10.129 along with P1 driver Dave Cormier in his VI Fitness Centres Porsche 911 GT2 RSR at a 1:10.578.
Before the feature race Sunday, the fans were informed that Steve Paquette (Bullet Racing/Porsche 911 GT3) who had qualified an impressive 6th overall had to pull out due to shoulder problems. In his place, ex-Indy Car/Sports Car Ace Ross Bentley was brought in to substitute. Ross was required to start from the back of the field in the same car that was campaigned by Bullet Racing at this year’s Daytona 24 Hours, stay tuned!
Once the driver introductions were complete, 10 year-old Chloe Howlett and her cousins gave the ‘Gentlemen Start your Engines’ command and the field went off on it’s two pace laps. As CCGP Honorary Starter, Drew Hellevang dropped the green, the first ever Children’s Charities Grand Prix was under way with field of cars never seen together charging into turn 1.
Andy Pearson took the early lead as Glenn Nixon chased about a second back in his Twin Turbo Porsche. The race featured lots of great racing throughout. The front pack included Dave Humphries (Specialty Engineering/ GT3 Nissan 240 SX) Tim Brown in his beautifully prepared Brown Bros. Ford/Lincoln, Mustang Cobra R, Rocky Elli (All West Insurance/GT1 Monte Carlo), Wouter Bowman (RX7 Turbo), Tony Morris Jr (Proformance Racing/Monte Carlo), Gerald Paetz (Nixon Prosports/Monte Carlo) and Simon Parker (Lamplighter Bar & Grill/ Monte Carlo). This also included legendary Porsche Driver, Kees Nierop who was battling hard in his Proformance Racing Chevy Monte Carlo and David Saville-Peck who put on a show in his small-but-mighty Super 7 Cars Inc., Caterham Super 7.
Unfortunately, as the cars had circulated during the pace laps, the wind picked up creating a fall wonderland of leaves from turn 3 right through to turn 7. This caused a variety of overheating problems which saw Tim Brown out of the race on lap 2 and both Collin Jackson and Dave Humphrey’s to visit the pits to have leaves removed. Tim was unfortunately-fortunate to receive the Riddleworks Helmet Paint Job ‘Hard Luck Award’. Kudos to the corner volunteers who had worked feverishly before the race to make sure the track was leaf-free.
The Corvette contingent was out in force with cars in both the P1 and P2 classes. Marty Knoll finished 9th overall driving the ex-Frank Allers/Speed GT Tom Johnston Racing Corvette C5. Finishing 4th and 5th respectively in P2 were Bryan Holyk (Bishop Sales/Corvette C5) and Chris Chamberlain (Davenport Motorsports/ Corvette C5) (CCGP Cont’d) Rounding out the top 6 positions in both P1 and P2 were Peter Weedon (Kenwood/Kool Coat GT1) and Dr. Carlos Tesler-Mabe (Carmen and Camille/Porsche 911). Peter had an impressive race charging from 22nd on the grid and Carlos gave up racing at the Miller Motorsports Park, Utah Grand Am finally to join us with his entire family for this groundbreaking event. Harry Watson (Metro Testing/Turbocharged Miata) battled hard throughout the race in his Specialty Engineering-prepared Mazda coming home 7th overall in P2. Larry Bell (ReEntry Racing/Pontiac Trans Am) and Michael Stevenson (Porscon Construction/Monte Carlo) drove great races to end up 10th and 11th in the P1 class. Lou Gruzelier (Bullet Racing/Porsche 911) drove a fantastic race to finish 8th overall in P2. Now back to Ross Bentley (Bullet Racing/Porsche GT3).
Ross put on an unbelievable demonstration of controlled aggression, coming through the field to finish 2nd overall. Of the 26 cars entered, only 24 took the green flag as both Jeff Lowe (Anducci’s/RE/MAX Panoz GTS) and Doug Yip (Engines of Interest/Ford Mustang) did not start due to mechanical difficulties. Ryan Ennis (West Coast Hot Rods/Mazda RX7) battled transmission woes all weekend and retired very early in the race.
The final standings in P1 had Andy Pearson in 1st place with Dave Cormier and Rocky Elli rounding out the podium. In P2, Ross Bentley took the victory with Dave Humphrey and Collin Jackson rounding out the top three.
The weekend also included Hot Laps for Kids which featured an amazing group of cars giving fans the opportunity to go for rides around the track with a donation to the charities. The silent auction featured many great items and was well supported by the great crowd in attendance.
The Children’s Charities Grand Prix was called the biggest race in BC since the Vancouver Molson Indy by Tony Parson’s of Global Television. If the 1st edition is an indicator, the future is bright for Western Canadian Motorsports.
1) Andy Pearson: Chevy Camaro
2) Ross Bentley: Porsche 996 GT3
3) Dave Cormier: Porsche 996 GT2 RSR
4) Rocky Elli: Chevy Monte Carlo
5) Gerald Paetz: Pontiac Grand Prix
6) Tony Morris Jr: Chevy Monte Carlo
7) Dave Humphrey: Nissan 240 SX
8) Collin Jackson: Nissan 240 SX
9) Peter Weedon: Trans Am (Nightfighter)
10) Simon Parker: Chevy Monte Carlo
11) Chris Chamberlain: Chevy Corvette
12) Bryan Holyk: Chevy Corvette
13) Kees Nierop: Chevy Monte Carlo
14) Carlos Tesler-Mabe: Porsche 996
15) Marty Knoll: Chevy Corvette
16) Harry Watson: Turbocharged Miata
17) Michael Stevenson: Chevy Monte Carlo
18) Lou Gruzelier: Porsche 996
19) David Saville Peck: Super 7
20) Larry Bell: Pontiac Trans Am
DNF) Glenn Nixon: Porsche 911 TT
DNF) Wouter Bowman: Mazda RX7 Turbo
DNF) Tim Brown: Mustang Cobra R
DNF) Ryan Ennis: Mazda RX7
DNS) Jeff Lowe: Panoz GTS
DNS) Doug Yip: Mustang Cobra
High-end homes set records this year, but still experience some
effects of the housing market slowdown.
Derrick Penner
Vancouver Sun
September 13, 2008
At first blush, the top end of British Columbia's real estate market seems to follow that old observation about the rich being different from the rest of us. Agents recorded 30 sales of mansions over the $5-million mark during the first seven months of this year, according to research by Landcor Data Corp.
The January sale of 3330 Radcliffe Ave. in West Vancouver for $28.2 million set a record for the highest sale price in the province, and the April sale of 6715 Crabapple Dr. in Whistler at $17.5 million marked a new high for the resort community.
That's not to say that high-end properties aren't experiencing some of the slowdown that has hit the overall real estate market.
The number of ultra-high-end sales this year, according to the Landcor count, fell short of the 38 sales over $5 million recorded in the first seven months of 2007. And several of this year's top property sales closed well below the original asking prices.
"There's no doubt that there's been a slowdown," said Grant Connell, an agent with Sotheby's International Realty Canada, who has Metro Vancouver's highest-priced current listing, the Ray Loewen family's Twin Cedars estate in Burnaby, with a $25-million price tag. So far, however, Connell has seen it more as a hesitation on the part of buyers. Buyers may be lacking confidence about which direction the market will go, or are bargain-hunting as inventory builds in the middle segment of the upper end of the market. "[Buyers] are there," Connell said. "Since Labour Day, my phone has been ringing tons, and I'm showing more things," including the Loewen property.
Connell has seen a bit of pressure on prices, but only in some segments, such as the $3.5-million to $5-million segment of West Vancouver, where a lot of houses have been built and there is lots of inventory.
"There is a sense [among buyers] that there is time enough ... to get a deal," he said. "And some people [are looking] for a deal based on what's happening in the market and what they're reading."
Among top-end sales, 3479 Point Grey Rd., on Kitsilano's tony waterfront, sold in June for $10.5 million, four per cent below its original asking price of just under $11 million.
In the leafy enclave of Shaughnessy, the home at 1688 37th Ave. sold at the end of August for almost $6.9 million, almost 11 per cent below its $7.7-million original asking price.
The listing price for Casa Mia, the stately 1930s-era Mediterranean-style villa at 1920 SW Marine Dr., has been reduced to $10.5 million from the $12 million it was listed for last fall. However, Manyee Lui, Casa Mia's listing agent and one of Vancouver's top high-end agents, said the price reduction wasn't due to a lack of interest in the property.
"We have continued interest [in Casa Mia]," said Lui, with Macdonald Realty. "The price reduction is to encourage people to write offers. It's not that we don't have interest." Generally, Lui said that while top-end buyers might be showing a bit of hesitation, she has been busier this year with top-end sales than with mid-range sales.
"I don't think [top-end buyers] are worried about market ups and downs," she added. "In this price range, people are looking for something very special and unique. They're not bound by the economy and all these kinds of things."
The penthouse at 1000 Beach Ave., now on the market for $14.8 million, was listed last September for $18 million.
The current broker for the property, Malcolm Hasman of Angell & Hasman, another of Vancouver's most prominent realtors, said his top-end listings remain active. Hasman noted he has three listings in the $6-million to $10-million range that are "continually being shown, even with the market slowing." "So, where the overall numbers in the mid-range of the market have slowed down, there still seems to be interest in high-end properties in Vancouver."
High-end markets are hard to read, explains Tsur Somerville, director of the centre for urban economics and real estate at the Sauder School of Business at the University of B.C. Somerville added that he hasn't looked specifically at B.C., but typically top-end markets are what economists refer to as "thin markets," with fewer properties and participants than the general market.
For condominiums, for example, there are many similar properties on the market and lots of information to guide buyers on what prices should be, Somerville said.
However, in the mansion market, where each house is unique and there aren't as many offerings, there are fewer comparables. "There is just not a lot of information about what a property is worth," Somerville said. "So you tend to see more variation in the possible prices that a property can get." He added that "the negotiation between what a buyer is willing to pay and what a seller is willing to take is a very different dynamic, because there's not a lot of information that says a property is worth [a particular amount]."
Even if there is a slowing in the overall B.C. market, just as price is less of an object for top-end buyers, top-end sellers don't face the same pressures to sell at prices they don't like. "You're not seeing enormous drops or anything," Connell said of Vancouver. He said sellers of unique homes, such as waterfront properties in West Vancouver, tend to hold out for the value they want to see. Owners put them on the market at high prices because they know there is very little waterfront left.
TOP-20 PRICIEST
Most expensive B.C. residential sales to the end of August:
1. 3330 Radcliffe Ave., West Vancouver, Jan. 8 $28,166,390
2. 12751 Rice Mill Rd., Richmond, April 17 $18,000,000
3. 6715 Crabapple Dr., Whistler, April 30 $17,500,000
4. 3233 Celtic Ave., Vancouver, July 21 $11,500,000
5. 17912 Old Yale Rd., Surrey, April 8 $11,250,000
6. 3479 Point Grey Rd., Vancouver, June2 $10,500,000
7. 5515 Kingston Rd., UBC Endowment Lands, Aug. 27 $9,980,000
8. 1818 Drummond Dr., Vancouver, May 28 $9,000,000
9. 1383 Marinaside Cres. (condo), Vancouver, March 25 $8,500,000
10. 3321 Point Grey Rd., Vancouver, April 9 $8,500,000
11. 5347 Kew Cliff Rd., West Vancouver, Jan. 28 $8,100,000
12. 1757 40th Ave., Vancouver, Jan. 29 $7,900,000
13. 1499 Pritchard Dr., Westside (Kelowna), May 29, $7,412,500
14. 1411 Connaught Dr., Vancouver, Feb. 28 $7,150,000
15. 3061 Mathers Ave., West Vancouver, May 29 $6,900,000
16. 1688 37th Ave., Vancouver, Aug. 27 $6,880,000
17. 4669 Blackcomb Way, Whistler, April 28 $6,700,000
18. 3311 Mt. Lehman Rd., Abbotsford, June 9 $6,520,000
19. 1784 Drummond Dr., Vancouver, April 25 $6,280,000
20. 1437 Minto Cres., Vancouver, Jan. 25 $6,200,000
Fewer Homes Being Added to the Market.
Vancouver, BC – September 12, 2008.
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 49 per cent to $2.2 billion in August, compared to August 2007. Residential unit sales were down 47 per cent to 5,175 units during the same period. The average MLS® residential price in the province was $421,685, down 4.1 per cent from August 2007.“Fewer home sales and larger inventories have tilted most BC housing markets in favour of homebuyers,” said Cameron Muir, BCREA Chief Economist. “However, a significant decline in new listings last month may be a signal that potential home sellers are now taking a wait and see approach.”
New MLS® residential listings in August fell 22 per cent from July on a seasonally adjusted basis, the second largest month-over-month decline in 25 years.
Compared to July, nearly 2,000 fewer active MLS® residential listings were available in the province, a decline of 3 per cent. “Home seller fatigue is now a possibility, as slower demand and competition among sellers lessen the chance of a timely sale,” added Muir.
Year-to-date MLS® residential sales dollar volume in the province declined 22 per cent to $25.4 billion compared to the same period last year. Transactions declined 27 per cent to 54,635 units, while the average residential price increased 7 per cent to $465,132 over the same period.
Summer lull sees properties stay on market.
VANCOUVER, B.C.
September 3, 2008
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totalled 1,568 in August 2008, a decline of 53.7 per cent from the 3,384 sales in August 2007, and a 47.7 per cent reduction from the 2,998 sales recorded in August 2006. New listings for detached, attached and apartment properties declined 1.7 per cent to 4,331 in August 2008 compared to August 2007, when 4,408 new units were listed.
“In August, properties on average remained on the market longer than we’ve seen in recent years,” REBGV president, Dave Watt said. “As the market heads into the traditionally more active fall season, we have begun to see property listings recede and prices moderate.”
Sales of detached properties declined 58.5 per cent to 535 in August 2008 from the 1,288 detached sales recorded during the same period in 2007. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties rose 1.6 per cent from August 2007 to $737,985. Since May 2008, the benchmark price for a detached property in Greater Vancouver has declined 4.3 per cent.
Sales of apartment properties in August 2008 declined 50.8 per cent to 740, compared to 1,504 sales in August 2007. The benchmark price of an apartment property increased 1.7 per cent from August 2007 to $374,366. Since May 2008, the benchmark price for an apartment property in Greater Vancouver has declined 3.9 per cent.
Attached property sales in August 2008 are down 50.5 per cent to 293, compared with the 592 sales in August 2007. The benchmark price of an attached unit increased 3.8 per cent in Greater Vancouver between August 2007 and 2008 to $463,433. Since May 2008, the benchmark price for an attached property in Greater Vancouver has declined 3.2 per cent.
As of August 31, 2008, active residential listings totalled 17,950 in Greater Vancouver, a 6.2 per cent decline from the 19,138 active listings seen on July 31, 2008.
MLS® Home Sales Generate $2 Billion in GDP and 28,800 Jobs.
Vancouver, BC
September 2, 2008.
British Columbia Real Estate Association (BCREA) released today a report on the economic impact of Multiple Listing Service® (MLS®) residential sales to the provincial economy in 2007.
A typical MLS® residential sale generated nearly $42,000 in economic output, $20,000 in Gross Domestic Product (GDP) and $13,000 in household income. Tax revenues to federal, provincial and municipal governments exceeded $9,800. A typical MLS® residential sale also generated 0.28 full time equivalent jobs (FTE).
“MLS® residential sales provide a significant contribution to BC economy,” said Cameron Muir, BCREA chief economist. Every 100 transactions in 2007 generated nearly $4.2 million in economic output and $2 million in GDP.
“While a single home sale has a relatively small impact, the cumulative effect of thousands of transactions is noteworthy,” added Muir.
The province recorded 102,892 MLS® residential sales last year, contributing $4.3 billion to economic output and $2 billion to provincial GDP. Home sales also create employment. For every 100 MLS® residential sales, 28 full-time equivalent (FTE) jobs were generated in 2007. This means 28,800 FTE jobs were needed to service the total number of MLS® residential sales last year.
100 typical MLS® residential transactions added nearly $1.3 million to household income. Total MLS® residential sales in 2007 contributed to more than $1.3 billion in BC household income.
Residential transactions generate significant tax revenue. Every 100 MLS® residential sales in 2007 accounted for nearly $300,000 in federal taxes, $660,000 in provincial taxes and $32,000 in municipal taxes. Total MLS® residential sales in 2007 generated approximately $300 million in federal taxes, $680 million in provincial taxes and $33 million in municipal taxes.
In total, MLS® residential transactions contributed more than $1 billion to government coffers.
Luxury home sales hold steady in most major markets across the country, says RE/MAX.
