The RE/MAX Upper End 2010 Report, highlighting sales and trends in 13 major Canadian centres and five sub-markets, 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.  Nine out of the 13 markets examined (69 per cent) shattered existing records – setting new all-time highs for first quarter activity in the upper end.

“Real estate continues to resonate with purchasers at every price point,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “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 be had – especially at the higher price points—a fact that is motivating buyers to act.”

While comparisons are being made to one of the worst first quarters on record – it’s important to note that the bounce back in many areas – including Greater Vancouver, Victoria, Winnipeg, London-St. Thomas, Greater Toronto, Ottawa, Montreal (Island), Halifax-Dartmouth, and St. John’s — exceeds record levels reported in years past.  Leading in terms of percentage increase in sales is Kelowna (700 per cent), Montreal (Island) (300 per cent), Victoria (275 per cent), Greater Toronto (263 per cent), Greater Vancouver (184 per cent), Hamilton-Burlington (169 per cent), Edmonton (164 per cent), London-St. Thomas  (125 per cent), and Ottawa (121 per cent).

“Recovery in the upper end has been nothing short of remarkable,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “This segment of the market was hardest hit when the recession took hold—yet its comeback has been fast and furious. There is no doubt that mindset has changed and confidence has returned.  One only has to look at the percentage increases to see the current upward trajectory.”

Economic performance has been a major driver, boosting consumer confidence levels across the board.  The tangibility of bricks and mortar has also played a role in record activity – a development that began in 2008 as affluent purchasers reduced their exposure to equities and shifted their earnings into real estate holdings. Recovering stock markets – and portfolios – in the months ahead will further contribute to housing market activity.

“Luxury sales as a percentage of the market have been steadily increasing in recent years – with the exception of 2009,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec.  “With the return to economic growth, it’s expected that the number of high net worth individuals will begin to rebound, following two years of consecutive decline.  This will continue to help prop up Canada’s luxury market going forward.”

Immigration and foreign investment have also had an impact on the luxury segment – and in some markets, seriously bolstered sales.  Middle Eastern buyers, Mainland China investors, and Europeans—to a lesser extent—are represented in virtually every market across the country.  Canada’s sound banking system, political stability, and strong dollar are attracting foreign investment – and that is spilling over into high end residential real estate. 

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).  With the exception of Toronto, buyers could be relatively particular and take their time in making decisions as balanced conditions characterized markets across the board.  Given adequate supply, prices are likely to hold steady or experience modest increases in the majority of markets in 2010. 

Canada’s most expensive luxury markets are shared equally among East and West, with Greater Vancouver topping the entry-level price point for high-end homes at $2 million, followed by $1.5 million in Greater Toronto and Montreal (Island). Upper-end value markets were most abundant in Atlantic Canada and smaller centres in Ontario, where luxury home prices started at $400,000 in St. John’s, $450,000 in Halifax-Dartmouth, $500,000 in London St. Thomas, and $750,000 in Ottawa and Hamilton-Burlington.  Winnipeg and Edmonton represented good value in the West at $500,000 and $850,000 respectively. 

Greater Vancouver holds the title for the most expensive home sold through MLS in the first quarter.  The property—an 11,600 sq. ft. home on ¾ of an acre on the city’s Westside, changed hands for $10.06 million.  Other noteworthy sales include: $7.25 million in the Greater Toronto suburb of Mississauga, $6.25 million in Toronto’s central core, $5.75 million in Calgary, $5.5 million in Montreal (Island), and $5.3 million in White Rock/South Surrey.  The priciest MLS listings could be found in West Vancouver ($29.9 million), Greater Toronto ($23 million in Bridle Path), Vancouver Westside’s Shaughnessy area ($22 million) and Victoria ($19 million).

RE/MAX is Canada’s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries.  Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.

“The results of the survey are proof positive that our sales associates are the best in the business,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’ve built a solid reputation based on consistent results. RE/MAX associates sell one in every three homes in Canada and carry more professional designations than any other realtor in Canada. We’re specialists in all niches from residential, recreational, and commercial properties to luxury homes. Our focus has always been service excellence, which includes a serious emphasis on professional development and education. The status quo may work for some, but after almost 40 years in the business, we’re not content to rest on our laurels. “

Reader’s Digest looked at 28 different product categories — ranging from cereal to residential real estate – and allowed consumers to select the brands that they trusted the most. RE/MAX joins leading brands such as RBC Royal Bank, TD Canada Trust, Air Canada, and Blackberry.

“Our commitment to the communities in which we live and work also runs deep,” says Polzler. “I think that’s something that has always set RE/MAX apart. We’ve been involved in charitable giving long before the terms ‘corporate philanthropy’ and ‘cause marketing’ were common. RE/MAX realtors participate in countless vital programs and causes each year that help the most vulnerable members of our society and strengthen the foundation of neigbhourhoods from coast to coast. Their enthusiasm, spirit and dedication to others never fails to inspire.”

Charitable giving is woven into the fabric of the RE/MAX organization. The company and its sales force has demonstrated a strong desire to give back, exceptionally active in both corporate and local charities. Close to $40 million has been raised in support of Children’s Miracle Network since 1992 – which funds research and development, outreach programs and upgrades to equipment and facilities at children’s hospitals and foundations across the country. The Canadian Breast Cancer Foundation is also a cause close to the hearts of RE/MAX associates—one that RE/MAX continues to support through its popular Sold on a Cure Program and the annual Yard Sale for the Cure.

RE/MAX is Canada’s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries. Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience, and production, while providing real estate services in residential, commercial, referral, and asset management.

Similar conditions existed in residential housing markets across the country last spring, setting the stage for heated second, third, and fourth quarters of 2009.  Affordability was top of mind then, as it is now, with many prospective purchasers cautiously venturing into the market. 

“Stronger than expected economic recovery, combined with additional incentives such as rising interest rates, stricter lending criteria, and a new sales tax, have served to kick-start activity in recreational property markets from coast-to-coast,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.   “Entry-level product is experiencing the greatest demand this year, as value-driven purchasers look to stretch their dollar as far as it will go.  This is especially true in Western Canada, where values have softened considerably year-over-year, but are now starting to firm up.”

The rebound in stock portfolios and greater stability in personal finances has added fuel to the fire.  Baby boomers and Generation X – aged 35 to 55 years – are working in tandem as a result, snapping up modest properties located on prime waterfront.  Despite the upward pressure on starting prices, the RE/MAX Report found that one in every four recreational property markets still offers winterized, waterfront product priced below $250,000.

The most affordable starting prices were found in: Newfoundland Coast, NL ($105,000), Shediac Bay ($230,000), and South Shore/North Shore, NS ($230,000 to $240,000) in Atlantic Canada; The Laurentians ($175,000) in Quebec; Prince Edward County ($200,000 – $250,000), Elliot Lake ($215,000), Parry Sound ($219,900), East Kawarthas ($225,000), and Bancroft ($235,000) in Ontario; and South Central Cariboo ($180,000), Lake Winnipeg ($250,000), Canmore ($270,000) and Ucluelet ($499,000 for oceanfront) in Western Canada.

“Opportunities exist for savvy purchasers across the country at virtually every price point,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec.  “Recreational property buyers in the mid-to-top end have a definite edge in the market, with greater purchasing power than in years past.  Those in the lower end will find that there are more waterfront options available than ever before. ”
Highlights:

- Of the markets that experienced an increase in starting prices, half were value-priced, with winterized waterfront product available under $350,000.  The remainder was typically comprised of prime, sought-after markets favoured among purchasers such as the Georgian Bay and Lake Simcoe areas and the Muskoka Region.

- The most expensive recreational property markets included: Sylvan Lake, AB ($1.2 million); Vernon, BC in the North Okanagan ($1.15 million); Tofino, BC ($875,000); Cultus Lake/Harrison Lake, BC in the Fraser Valley ($800,000); Whistler, BC ($799,000) and Salt Spring Island, BC ($750,000).

- Americans have virtually fallen off the map in Canadian recreational properties.  Only Shediac Bay, where recreational property values are a fraction of those in the US, continues to draw eager purchasers from the eastern seaboard of the United States.

- Bargain-priced properties in the Southern United States are still having an impact on Canadian recreational property markets, drawing some purchasers south of the border to areas such as California, Arizona, Nevada and Florida.
 
- Pent-up demand will continue to prop up recreational property sales in markets from coast to coast this season, as buyers who sat on the sidelines in 2008 and 2009, finally enter the market, spurred on by better prices, good affordability, and economic recovery.

RE/MAX is Canada’s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries.  Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.