15 May, 2007 Rising real estate trends in Canada have pushed luxury homes sale up, way up. Nearly every region of Canada has seen increased sales of luxury homes, especially the Western Provinces. Full Article. Rags to Riches to Real Estate TORONTO, May 15 /CNW/ - 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 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. 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 Real estate activity in Halifax's luxury housing market remains stable, with only slightly fewer sales of properties priced upwards of $600,000 occurring in first quarter 2007, compared to first quarter 2006 (eight versus 10 sales, respectively). The city's south end comprises the majority of luxury homes, while St. Margaret's Bay, approximately 20 minutes from Halifax is among the most coveted by purchasers looking for oceanfront homes. The majority of luxury home purchasers in this area are professionals, such as doctors or lawyers in their 50s and 60s. While many high-end homeowners are native to Halifax, there is a growing trend of buyers migrating east from across the country and from the U.S. and Europe. 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-after areas include Westmount and Mont Royal. In Ottawa, about a third of all buyers in the luxury market are from overseas. The city's unique combination of having the cultural, sports and entertainment attractions of a large city, as well as a relaxed, almost small town feel has attracted many international buyers. Many of these buyers are senior executives transplanted to Ottawa, while others have discovered the city through their travels and are drawn to the city's features and attractions. The typical luxury homebuyer is between the ages of 45 and 58 and is a highly successful professional or executive. Sales of luxury homes in Ottawa priced over $750,000 more than tripled in the first quarter of 2007 compared to the same period last year, and this trend of strong growth is expected to continue for the rest of the year. The number of unit sales priced from $1 million and up increased by 22 per cent (to 434 from 357) in Toronto during first quarter 2007 over first quarter 2006. Forest Hill and Rosedale are the most sought-after luxury neighbourhoods in the city's core. The growing majority of houses in these two tony areas boast completely renovated interiors with the most modern amenities, while their exteriors reveal a more established, mature look. Yorkville is home to some of the city's most luxurious condominiums. Purchasers in the luxury market are typically professional couples in their 40s, 50s and 60s, and are most often trading up from their current luxury home. The buyer pool in this market also consists of people who have been transferred in from the U.S. and Europe. Backed by a strong economy, the luxury housing market in Winnipeg remained robust during the first three months of the year, and all signs indicate that the market will continue to strengthen into 2007. Sales of homes priced from $500,000 and up rose sharply in Winnipeg during the first quarter. From January to March, the number of unit sales in the $500,000+ price category increased by 38 per cent, year-over-year. The typical buyer in the city's luxury market is a professional couple in their 30s and 40s. High-end homeowners are typically executives, private business owners, lawyers or doctors. The most sought after areas for high-end homes include the established South West neighbourhoods of Lindenwoods and Tuxedo, as well as Pritchard Farms. In Edmonton, sales of homes priced from $950,000 and up increased significantly during the first quarter of 2007. From January to March, the number of unit sales in this price range increased by 71 per cent over the same period last year. Purchasers in the luxury real estate market are typically 35 to 45 years old with young families, and have achieved their wealth through their professional careers, as well as inheritances. South West and West Edmonton are the city's most reputable areas for high-end homes, while St. Albert and Sherwood Park are bedroom communities in North Edmonton that boast a large number of luxury properties. Fuelled by a robust economy and unwavering in-migration, Calgary's luxury housing market remained strong during first quarter 2007. Sales of homes priced from $1 million and up increased by 38 per cent in the city compared to the same period last year. Steadfast market conditions are expected to continue, supported by the typically more-active spring and early summer months. The majority of luxury homebuyers are executives working in the oil and gas sector, many of whom have been relocated to Calgary. For purchasers in search of unique properties, luxury homes situated on manmade lakes such as Lake Bonavista, Lake Bonaventure, Arbour Lake and Auburn Bay are receiving attention. Vancouver remains a strong destination both nationally and internationally among luxury buyers. In Vancouver, the luxury home market is firmly in the sellers' favour as frenetic activity and multiple offer situations continue to characterize the market. Sales of homes priced over $1 million in Vancouver rose by 24 per cent in the first quarter of 2007 to 673 units from 544 units in the first quarter of 2006. The neighbourhoods of Point Gray, Dunbar and Kitsilano are most popular among luxury buyers due to their proximity to the ocean, parks, recreation and great schools. Methodology For the survey, a representative randomly selected sample of 249 adult homeowners, whose homes have an estimated value of $500,000 or more, was interviewed online from April 30 to May 7, 2007. With a sample of this size, the results are considered accurate to within +/-6.2 percentage points, 19 times out of 20, of what they would have been had the entire adult population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure that the sample's regional and age/sex composition reflects that of the actual Canadian population according to Census data. About Royal LePage Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of over 12,600 agents and sales representatives in 600 locations across Canada operating under the Royal LePage, Johnston & Daniel, and Realty World brand names. Royal LePage manages the Royal LePage Franchise Services Fund, a TSX listed income trust, trading under the symbol "RSF.UN." For more information visit www.royallepage.ca. 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. | 
