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ReMax reports record-breaking sales of luxury homes

Steve Ladurantaye Globe and Mail

Luxury homes sales not only recovered from recessionary depths in the first quarter of this year, ReMax Canada said they shattered previous all-time records in most Canadian cities studied.

Attributing the upswing in sales to “improved economic performance, increased personal wealth, immigration and foreign investment” in its Upper End Market Trends report, ReMax Canada said previous sales records for high-end homes broke records in nine of the 13 regions examined. The real estate sales company didn't provide statistics to back up the reasons for the bounce in sales, but did allow that the comparisons to last year's first quarter are flattering because very few people were buying and selling through the recession.

ReMax's definition of a luxury home varies by market, from $400,000 in St. John's to $2-million in Greater Vancouver.

Those who returned to the market in the first quarter were able to take their time making up their minds because the market is balanced, ReMax said. This contrasts with the broader market, where analysts worry that low interest rates have created an unsustainable bubble as buyers rush to get in on what they see as a market with limited downside.

This has led to a rapid increase in average national sale prices - almost 20 per cent in the last year - as buyers bid each other higher in bidding wars. The market survey doesn't mention anything about the rapid rise in prices, and the role the appreciation may have played in pushing more homes into so-called luxury territory. http://www.theglobeandmail.com/report-on-business/remax-reports-record-breaking-sales-of-luxury-homes/article1546686/

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