Demand for luxury homes intensifies amid rising Canadian and global wealth
RE/MAX Ontario-Atlantic Canada and RE/MAX of Western Canada examined 12 major centres from coast-to-coast and found that luxury sales have surged in close to two-thirds of housing markets between January 1 and April 30 of this year, compared to the same period in 2010. Leading in terms of percentage increases over the four-month period were Greater Vancouver (118 per cent) - where foreign investment has also played a major role - Ottawa (59 per cent), Calgary (51 per cent), Halifax-Dartmouth (27 per cent), Winnipeg (24 per cent), Hamilton-Burlington (13 per cent) and Greater Toronto (nine per cent). Six of the seven major cities - with the exception of Calgary - are poised to set new records in top-end activity by year-end. Several are just short of peak levels reported in 2010, such as Victoria, Regina, and London-St. Thomas.
Luxury home sales in Hamilton-Burlington have been robust in 2011, with sales 13 per cent ahead of last year’s levels. Purchasers have demonstrated a growing appetite for upper end real estate in Burlington, in particular, with 20 per cent more homes changing hands over $750,000 to date. Inventory is adequate at present, but less selection exists closer to the upper-end starting price point. High-end homes in east Burlington, north and south of the QEW, remain most sought-after, although Ancaster and Flamborough have emerged as favoured hot pockets, accounting for 20 per cent of all sales in the region. In fact, Ancaster’s rising appeal was underscored with the recent sale of a $3.25 million-dollar home—the highest ever recorded in the Hamilton Area.
The priciest property to change hands overall in Hamilton-Burlington, at $3.8 million, was located on Burlington’s lakeshore. The most expensive home currently listed—at $5.9 million—is also a lakefront estate in Burlington. Locals are most active, although approximately one in four purchasers is coming from across the GTA. Older, established areas are coveted and buyers are not afraid to build to realize their dream home, driving the infill phenomenon in Hamilton, Burlington and Ancaster. Renovations are also pushing up prices, with applications for building permits very strong throughout Hamilton-Burlington.