Ottawa's luxury housing market segment soars.
As per the RE/MAX Media Release (April 26, 2010) – Luxury home sales soared in the first quarter of 2010 as affluent purchasers moved to take advantage of favourable market conditions across the country. Ottawa’s first quarter results show an increase in the luxury home market of 121%
The introductory price point for Ottawa’s luxury home category starts at $750,000 and up. In the first quarter of 2010 there were a reported 42 sales in this category. Past year sales were as follows; 2009 = 19 sales, 2008 = 33 sales, 2007 = 23 sales and 2006 = 7 sales.
Most active in 2010 were business executives, entrepreneurs and professionals. Location was first and foremost among upper-end buyers, followed by a preference for newer homes or those that are turn-key (completely renovated). Given adequate supply, prices are likely to hold steady or experience modest increases in the majority of the Canadian markets throughout the year.
Immigration and foreign investment have also had an impact on the luxury segment across the country. Canada’s sound banking system, political stability, and strong dollar are attracting foreign investments, and this is spilling over into high end residential real estate.
The RE/MAX Upper End 2010 Report, highlighted sales and trends in 13 major Canadian Cities, found that improved economic performance, increased personal wealth, immigration and foreign investment all contributed to a serious upswing in sales. Virtually all areas experienced double and triple-digit increases between January and March of this year over 2009 figures for the same period. Ottawa’s market set an all-time high for the quarter activity in the upper end.
Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada go on to say, “With the top end of the market shifting into high gear, every segment of the residential real estate sector is now operating in tandem. Despite the upward momentum, there are still deals to he had – especially at the higher price points – a fact that is motivating buyers to act.