Canadians are fuelling unprecedented demand for luxury homes while the overall housing market remains robust, the Re/Max real estate company says.
"Million-dollar home sales are climbing at a rate never before seen in major centers across the country," Michael Polzler, executive vice-president and regional director of Re/Max Ontario-Atlantic Canada, said Wednesday in a release.
"If the market continues at this pace, existing sales records for all types of real estate, including upscale properties, will be shattered by year-end."
Re/Max's "Upper End Report" found that luxury home sales rose to new heights in 12 out of 13 markets in January to May 2006, compared with one year ago, with increases ranging from 8 percent in Halifax/Dartmouth, N.S., to as high as 177 percent in Edmonton.
Only Windsor, Ont.,, where concerns about the future of the automotive industry are having an impact on real estate in general, reported a decline in sales.
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Elton Ash, regional executive VP for Re/Max of Western Canada, cites three factors at play in the upper-end market: "Existing homeowners cashing in on substantial equity gains to reinvest in the top end of the market; strong economic performance across the country; and solid consumer confidence levels."
He said limited inventory in Vancouver, Calgary and Toronto has boosted intensity in the marketplace.
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