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Rich Rushing Into Luxurious Homes

Real-Estate: Sales Show Economy’s Overall Strength

Toronto - Sales of “luxury” homes outpaced the growth of the overall market in most big Canadian cities in the first half of 2005, according to a Royal LePage Real Estate Services report released yesterday.

The report said sales of high-end homes increased more than 40 per cent, year-over-year, in the first two quarters of the year.

“Increased sales of larger and more luxurious homes reflect the underlying strength of the Canadian economy - one that has demonstrated a strong performance and resilience throughout 2005 despite the strength of the Canadian dollar,” said Phil Sopher, CEO of Royal LePage Real Estate Services, a wholly owned subsidiary of conglomerate Brascan Corp.

“Through these purchases, many high net-worth individuals are expressing their on-going confidence in both the economy and housing investments.”

In Vancouver, sales of homes priced at $1 million or more increased by 18 per cent for the first six months of the year to 739 units from 629 in 2004.

In oil-rich Calgary, luxury home sales tripled year-over-year during the period, with 110 units priced at $900,000 or more compared to 37 in the same period of 2004 - more than were sold in all of 2004.

Sales of Toronto homes priced at $1.5 million or more jumped 48 per cent, year-over-year, in the first six months of 2005 to a historical high of 288 units from 195 units in the year earlier period, the report said. The upscale neighbourhoods of Rosedale, Forest Hill and the Bridle Path remain popular.

Sales of properties in the high end of the market in Winnipeg - those at $300,000 or higher - more than doubled to 168 units from 81 in the first six months in the same period in 2004. Sales in that segment grew 52 per cent on average between 2002 and 2004 while the overall market grew by just four per cent.

Luxury home sales in Ottawa declined seven per cent, with units going for $750,000 and up dropping to 40 in the first half of 2005 from 43 last year, the report found.
Canadian Press

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