More Edmontonians Living in Luxury

The following info is taken from a Royal Lepage survey which indicates that the number of Canadians purchasing high end homes has drastically increased, particularily in Edmonton, Cangary and Halifax. In Edmonton it has gone up by 126%! (I’ve taken out the marketing mumbo-jumbo and just left the facts and analysis).

Number of Canadians embracing life in the ‘lap of luxury’ rises

Carriage Trade Report finds that sales of luxury homes far outpaced the general market across Canada – year-over-year unit sales more than doubled in Calgary, Edmonton and Halifax

TORONTO, Nov. 24 /CNW/ – Canadians are embracing luxury living more than ever before – and if they are not currently living in a luxury home, many aspire to someday live in the lap of luxury. As a result, the number of unit sales of luxury homes has skyrocketed in Canada’s major markets, according to the Carriage Trade Luxury Properties Report released today by Royal LePage
Real Estate Services. The report found that there has been a surge of unit sales in all markets examined, with the greatest increases occurring in Calgary, Edmonton and Halifax, which all reported sales increases of more than 125 per cent, year-over-year, in the first three quarters of 2006.

If the aspirations of Canadians play a factor, sales of luxury homes will not diminish anytime soon. The report, which includes a market analysis of trends and activity in major markets across Canada, combined with a national omnibus poll (conducted by Maritz Research Canada), found that over one-third (37%) of Canadians aged eighteen and older, currently live in a luxury home, plan to buy a luxury home soon, or aspire to one day live in a luxury home.

"The pronounced increase in the number of luxury homes sold across the country is a strong reflection of Canadians’ confidence in the economy and the real estate market," said Phil Soper, president and CEO, Royal LePage Real Estate Services. "For the substantial sums that these homes command, buyers have come to expect distinctive properties outfitted with luxurious amenities,
where it is clear that painstaking attention has been paid to every detail."

When asked, "If you were purchasing a luxury home, what would be the most important criteria you would consider when choosing this type of home?" Canadians cited: investment potential (25%), proximity to excellent schools (19%), the prestige of the neighbourhood (17%), luxurious amenities throughout the house and the size of the house (11%) and the prominent neighbours (8%).

In terms of the feature that would be the most important to Canadians if they were purchasing a luxury home, a commercial style kitchen assumed top rank (21%) in the poll. Interestingly, a gender divide was evident when it came to cooking as 26 per cent of women cited the commercial style kitchen as the most important feature, compared to 15 per cent of men. The men’s den prevails with 11 per cent of males citing the luxury in-home movie-viewing theatre as the feature that would be most important to them if they were purchasing a luxury home, compared to only five per cent of females.

The poll also found additional features that would be of most importance to Canadians if purchasing a luxury home to include an indoor or outdoor pool (14%), smart wiring (12%), heated floors and driveway (11%) and a fitness centre/pilates/yoga studio and luxury in-home movie theatre (both at 8%).

                               Report Findings
    ————————————————————————-
                         Luxury Home Market Summary
    ————————————————————————-
                                       Units Sold      Units Sold
                                Price        January to            January to
          Market       Category    September 2006  September 2005  % Change
    ————————————————————————-
         Halifax         $600,000 +        43              17         152.9%
    ————————————————————————-
         Montreal      $1,000,000 +       121              92          31.5%
    ————————————————————————-
         Ottawa          $750,000 +        75              56          33.9%
    ————————————————————————-
     Greater Toronto   $1,000,000 +      1309            1088          20.3%
    ————————————————————————-
        Winnipeg         $500,000 +        45              36          25.0%
    ————————————————————————-
         Calgary       $1,000,000 +       237              91         160.4%
    ————————————————————————-
        Edmonton         $700,000 +        96              42         128.6%
    ————————————————————————-
    Greater Vancouver  $1,000,000 +      1935            1231          57.2%
    ————————————————————————-
        Victoria       $1,000,000 +       154             121          27.3%
    ————————————————————————-
    Source: Data obtained from various real estate boards (REBGV, VREB, CREB,
    EREB, WREB, TREB, OREB, GMREB and NSAR)

Note: The price categories listed above correlate to the price criteria for a Carriage Trade home. In Toronto, Vancouver, Victoria, 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.

In Calgary, sales of luxury homes priced at $1-million and above have risen dramatically. Unit sales in the period of January to September 2006 have more than doubled when compared to the same period in 2005, from 91 to 237 units sold, an increase of 160.4 per cent.

Calgary’s luxury home market has experienced phenomenal growth over the past few years – a direct result of the burgeoning oil and gas sectors. Many of the luxury homebuyers in the city are oil and gas executives or entrepreneurs with junior oil companies, a significant number of whom have
relocated from other provinces or the U.S.

The city’s areas that boast the majority of Carriage Trade luxury homes are Mount Royal, Elbow Park, Roxborough, Rideau Park and Brittany. Properties located in these tony neighbourhoods are typically older homes on mature lots, featuring top-of-the-line upgrades and sumptuous amenities. Buyers in the luxury market favour custom-built kitchens, granite countertops and exotic
wood flooring. Among must-have rooms in the house is the media and entertainment room – a recreational-style room featuring a movie screen, theatre-style seating and often designed without windows to optimize viewing experiences.

In Edmonton, sales of homes priced at $700,000 and above skyrocketed by 128.6 per cent, year-over-year, in the first nine months of 2006 to 96 units sold, compared to 42 units sold during the same period in 2005.   

Demand for luxury homes has fiercely increased in Edmonton as corporate relocations to the city have expanded the pool of buyers searching for such homes. Demand has also been sustained by rising income levels fuelled by strong economic growth across the province. Average house prices in Edmonton have experienced unprecedented growth over the last year, resulting in luxury
home prices reaching new heights.

The luxury housing market is characterized by more balanced conditions, compared to the tight inventory levels which have been the norm across Edmonton during 2006. Listing periods for luxury homes are also slightly longer than homes priced close to the average selling price. South West and
West Edmonton are the most sought-after areas of the city among purchasers looking for luxury properties.

Buyers searching for luxury properties in Edmonton tend to favour newer homes with high ceilings and open-concept floor plans. Kitchens are often a focal point of the house, which are outfitted with commercial style appliances and custom cabinets. Other popular amenities are media rooms and Mediterranean style decks with an immense attention to detail throughout the home.