Royal LePage Housing Report: first quarter 2008.

Canada’s real estate market stands on stable footing. On average, healthy year-over-year house price gains were recorded during the first three months of 2008.

While more modest price increases were observed when compared to previous quarters, the solid appreciations noted in the first quarter are largely due to the shared effects of resilient local economies, high immigration levels, and relatively low interest rates – all leading to enduring buyer demand, according to a House Price Survey report released today by Royal LePage Real Estate Services.

While almost all markets surveyed experienced price increases, it was the smaller cities, with relatively affordable housing and strong economies based on resource industries that emerged with the most significant gains. Thriving Saskatoon saw appreciation as high as 66 per cent, while areas in Newfoundland posted increases above 20 per cent for the first time since Royal LePage started tracking house prices.

Continue reading this article >>

Rags to Riches to Real Estate

Nouveau riche, not old money driving high-end home sales, Royal LePage report

Good old-fashioned hard work, not birthright, is the key to unlocking fortune and the front door of a new luxury home, according to the 2007 Carriage Trade Luxury Properties Report released today by Royal LePage Real Estate Services. Given that the unit sales of high-end homes in almost all cities surveyed increased significantly year-over-year, Canadians appear to be working harder than ever.

According to the 2007 Carriage Trade Luxury Properties Poll (conducted by Ipsos Reid), of high net worth Canadians, almost half (46%) cite hard work as the main driver to attaining wealth, followed by the drive to succeed (27%) and a higher education (18%). Only four per cent (4%) of respondents chalk their success and their financial stability to being born into the right family, while a mere one per cent (1%) attribute it to plain old luck.

The 2007 Carriage Trade Luxury Properties Report includes a market analysis of trends and activity in eight major cities across Canada, combined with a national Ipsos Reid poll that measures attitudes, upbringing and beliefs of high net worth Canadians, as defined as individuals with assets of at least $250,000 (excluding real estate) and a primary residence valued at a minimum of $500,000.

Regional variances were observed across the country with the largest increase in unit sales occurring in the nation’s capital, Ottawa, followed by energy-rich Alberta, as measured by local real estate boards. Increases of more than 200 per cent in Ottawa are due to a large pool of international buyers and local executives and professionals. The number of high-end home sales rose by 71 per cent in Edmonton and 38 per cent in Calgary, fuelled largely by in-migration of executives in the oil and gas sector, as well as homeowners trading up.
“Luxury living is no longer the exclusive domain of a few. Buoyant economic conditions and confidence in the market going forward have ignited a growing passion for investing in luxury property among an increasing number of Canadian families. Consequently, homes in this market niche have been trading briskly, and this has put upward pressure on prices,” said Phil Soper,president and CEO, Royal LePage Real Estate Services. “The poll findings reveal that real estate in the Carriage Trade market is both sought after and attainable for hard working people across the country.”

Rags to Riches

Rags to riches stories are being played out in the kitchens of some of Canada’s best neighbourhoods. The poll results revealed that the majority of the high net worth individuals surveyed started from modest beginnings. When asked, “What was your economic status growing up?” only three per cent (3%) of respondents reported they were raised in wealthy/affluent households, while 79 per cent of respondents came from lower middle class and middle class upbringings. Four per cent (4%) of wealthy homeowners have risen out of poverty and now live in a home worth at least $500,000.

Home Sweet Homes

When it comes to the value of primary residences, 12 per cent of high net worth Canadians live in homes with price tags starting at $1 million, while almost half (47%) of respondents live in properties valued from $600,000 to$999,000.
Added Soper: “Prosperous Canadians see real estate as an important element in their investment portfolios. Demand for well-appointed properties remains strong with a trend of affluent Canadians owning more than one home.
In fact, one-quarter (25%) of wealthy homeowners own two properties, and six per cent (6%) own three residences while two per cent (2%) own more than five properties.”
Success seems to transcend sectors with luxury property owners citing a spectrum of occupations including entrepreneurs (13%), CEOs and senior executives (10%), medicine (10%), sales (7%) and law (3%). The poll found that 32 per cent of high net worth homeowners have already retired and can now enjoy the fruits of their labour.

<<
REPORT FINDINGS

-------------------------------------------------------------------------
                         Luxury Home Market Summary
    -------------------------------------------------------------------------
                                            Units Sold   Units Sold
          Market              Price           Q1 2007      Q1 2006   % Change
    -------------------------------------------------------------------------
    Halifax                 $600,000 +           8           10         -20%
    -------------------------------------------------------------------------
    Montreal                $900,000 +          56           49          14%
    -------------------------------------------------------------------------
    Ottawa                  $750,000 +          23            7         229%
    -------------------------------------------------------------------------
    Greater Toronto       $1,000,000 +         434          357          22%
    -------------------------------------------------------------------------
    Winnipeg                $500,000 +          11            8          38%
    -------------------------------------------------------------------------
    Calgary               $1,000,000 +         130           94          38%
    -------------------------------------------------------------------------
    Edmonton                $950,000 +          12            7          71%
    -------------------------------------------------------------------------
    Greater Vancouver     $1,000,000 +         673          544          24%
    -------------------------------------------------------------------------

Source: Data obtained from various real estate boards (REBGV, CREB, EREB, WREB, TREB, OREB, GMREB and NSAR)
Note: The price categories listed above correlate to the price criteria for a Carriage Trade home. Carriage Trade is a Royal LePage distinction for the most exceptional homes on the market. In Toronto, Vancouver, 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.

REGIONAL SUMMARIES
>>
(…) Strong consumer confidence and a robust economy have contributed to growth in Montreal’s luxury home market with sales of properties priced above $900,000 rising 14 per cent in the first quarter, year-over-year, to 56 units in 2007 from 49 units in 2006. The strong growth seen in the first quarter is expected to persist throughout 2007. Luxury home buyers are typically between the ages of 35 and 60, are highly successful professionals or executives, and have a keen eye for quality and value. Some of Montreal’s most sought-afterareas include Westmount and Mont Royal.

About Carriage Trade
Carriage Trade is an exclusive real estate service from Royal LePage offering the most distinguished homes in Canada to discerning buyers from around the world. For a property to qualify as Carriage Trade, it must meet a series of criteria, the most imperative being location and price. The residence must be situated in a distinctive, prestigious, sought-after and
exclusive neighbourhood or on prized acreage or land and meet minimum price requirements.
For more information visit www.carriagetradeproperties.ca. and www.royallepage.ca.

Find original article here

Females Drive Housing Demand

…And hammer away at renovations

Royal LePage survey finds 25% of women searching for a home are looking for a ‘fixer-upper’ and plan to do the work themselves – Currently, 30 per cent of single, never-before married women own their own home, while 45 per cent of divorced or separated women and 64 per cent of widowed women are homeowners, according to the Royal LePage Female Buyers Report released today.

“The notable upswing in real estate activity among females is not surprising given that women are earning higher salaries than ever before,” said Lisa da Rocha, vice president, marketing, Royal LePage Real Estate Services. “There has been a shift in mindset whereby women have distanced themselves from the traditional notion that you must first find Mr. Right and then together you buy a home. Our findings reveal that 66 per cent of women who intend to purchase would not find the process of buying a home on their own intimidating.

“In Montreal, home buying activity among females has increased significantly over the last three to four years. Activity growth has been supported by the larger number of women in executive and professional careers, which has afforded them the financial freedom to purchase a home on their own. Women of all age groups tend to favour condominiums for their maintenance-free lifestyle, and generally spend an average of $300,000 on such properties. They tend to place the style, design, and security of a property at a high priority, and are not interested in undertaking renovations. The centre of Montreal is a popular neighbourhood for female purchasers who are looking to stay close to the city centre, while Old Montreal offers heritage-style properties in a desirable location.”

Additional Poll Findings:

• Among those who own and rent and intend to purchase a home/condo in the next three years, men and women both rank equally (81%) taking out a mortgage from a bank, however, nine per cent of men said they would rely on their family to pay for their entire home, in comparison to only three per cent of women.
• Of women who own, who don’t intend to purchase in the next three years, when asked, “Which one of the following motivations most influenced your decision to purchase your home?” the top three responses included: it makes more sense than renting (36%), want to put my money into a good investment (22%) and pride of ownership (13%).
• Among women who are intending to purchase in the next three years, when asked, “Which methods will you use to educate yourself about home purchasing?” the top three responses cited were speaking with a real estate agent (83%), speaking with friends and relatives (78%) and using real estate and financial websites (64%).

Source: Royal LePage Female Buyer Release