Real Estate Information Archive


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High End Market Very Healthy!

by Claire Franceschetti

What's happening in the High-End market these days?  Great things according to the numbers!

 Improved financial standing among high net worth individuals is the major factor driving strong sales activity at the top end of Canadian housing markets, according to RE/MAX stats.

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.   

“Three key factors—serious equity gains, stock market recovery, and improved economic performance—have been behind the push for luxury housing product across the country,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “The combination also continues to bolster the bottom line of high net worth individuals both nationally and globally.  The impact of that wealth is being seen in the demand for all things luxury—from homes to cars, collectibles and fine wines.”

“The strength of the upper-end segment continues to defy expectations,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “That demand remains largely domestic speaks to the solid underpinnings of the market, while underscoring the appeal of Canadian real estate on an international stage."

The climbing wealth factor has played a role. The financial status and number of millionaires is rising once again—a fact supported by several recent studies released by notable institutions such as CapGemini/Merril Lynch, Citi Private Bank, Deloitte Centre for Financial Services, and Investor Economics—to name a few.  While estimates vary, the studies concluded that the high net worth population in Canada and/or abroad—and its corresponding fortunes—is trending upward and will experience considerable expansion moving forward.   Despite the impact of the 2008/2009 global financial crisis, most millionaire portfolios/assets have improved or exceed pre-downturn levels.  Of particular interest, residential real estate holdings have increased among high net worth individuals, as they express a clear preference for tangible assets.  This trend is expected to continue, and serve to boost high-end residential real estate in months ahead, as the move to diversify assets continues in 2011. 

As Canada’s millionaire club swells in size, inventory will play an increasing role in future, as the existing upper end housing stock struggles to keep pace with growing demand in central core areas, particularly in Canada’s gateway centres.  Infill, renovation and new construction are helping to some extent—while driving up prices in tandem.  The building activity is also serving to create new prime areas in areas that were once considered high-end peripherals, as well as in suburban communities.

Limited inventory levels in Canada’s largest markets have hampered sales activity to some extent in 2011, given that demand exceeds available supply.  Multiple offers are occurring in both Greater Vancouver and Greater Toronto, as buyers compete for quality product in prime neighbourhoods.

This is good news for owners of high end homes in the GTA.

Give me a call if you'd like to discuss this or any other real estate related issue!

It's a Sizzling Sellers Market!

by Claire Franceschetti

I want to keep you updated with the Greater Toronto Area Real Estate Market. After reviewing the latest sales figures from the Toronto Real Estate Board, it looks like:


So far in May 2011 there were already 4,812 sales for the month! At this rate we should hit approx. 10,000 total sales for May. We will meet or exceed the number we hit in May 2010.

Here’s where it gets really interesting. Currently there are only 18,430 homes for sale on the Toronto Real Estate Board, compared to 25,414 at the end of May 2010. That’s about a 35% drop! What does that mean? Well, in many areas it’s getting even more frustrating for buyers and prices are still climbing.

The question I get asked most often is, “What do you think will happen this year?” We made it through a federal election and the wheels didn’t fall off the economy. This market had been going straight up for over 10 years now. When will it stop? Doesn’t look like it will be this year! There are 3 main conditions that will cause our market to remain strong while other areas seem to stagger.

  1. Our inventory levels are very low and should remain low. We won’t have a huge influx of new listings or see anything close to other areas around the world as far as “distressed properties” coming on the market. Buyers won’t be able to sit back to pick and choose.
  2. Mortgage interest rates are very low and should remain low for quite some time. Although we may see marginal increases over the next while, home ownership will remain very affordable.
  3. Our economy is very strong and seems to be improving. Canada is a shining star in the world economy. 

The key to taking advantage of current market conditions is working with the right realtor. When you hear of anyone who may want to buy or sell, please contact me at the office. I promise you that I will take care of them, do a great job and provide them with the best customer service. If you would like any more information, I’m here to help.


Displaying blog entries 1-2 of 2

Contact Information

Photo of Claire Franceschetti Real Estate
Claire Franceschetti
Right At Home Realty Inc.
190 Marycroft Ave.
Vaughan ON L4L5Y2
Direct: 416-918-6325
Office: 416-391-3232
Fax: Fax: 416-987-8001