I’ve been noticing that the market has been pulling my business towards those types of properties that require much more creativity and effort than the traditional home requires. Those that are investment properties, problem properties (aka opportunities in diguise), and my most interesting aspect of business – Luxury homes. I have been active in the luxury home market this year, and it is unlike all segments of Real Etate I have experienced thus far. The best way to sum it up would be: when there is lots of money involved, there is a lot of risk, a lot at stake, people are on their toes and emotions and levels of intensity are VERY high.
I received an email this morning from RE/MAX about the luxury home market, and I would like to share it with you. Some of you (like me) are no doubt in awe of some of the beautiful luxury homes in Rockliffe, Rothwell Heights or the Glebe even. Here we will look into this market segment a little closer to get a good look at how it has been developing. Enjoy!
Luxury price point: $750,000
Demand for luxury properties in the nation’s capital continues to climb unabated, with a record 42 sales posted in the first quarter of 2010. The number of homes sold over $750,000 is up 121 per cent over the 2009 fi gure of 19 for the same period, and 27 per cent over peak 2008 levels. Home-buying activity remains unusually brisk in the upper end, bolstered by strong consumer confi dence and low interest rates. Even concerns over government downsizing have yet to impact sales in the top end of the market. In fact, nine homes changed hands over the
$1 million benchmark between January and March, up from four one year ago. While just under 200 properties, priced in excess of $750,000, are listed for sale, some key areas could benefi t from additional high end product. Older, established neighbourhoods such as Rockcliffe, Manor Park, Rothwell Heights, and Glebe are highly sought-after, but so too are properties in Manotick, along the Rideau River and the shores of the Ottawa River. Many suburban properties, especially those that offer estate lots, are also coveted. Multiple offers are a factor in the market, but they tend to occur on distinctive properties.
The most expensive single-family home sold so far this year was priced at $1.949 million, while the priciest condo fetched $1,375,500—neither sale setting any record. An estate property in Rockcliffe is the highest priced MLS listing in Ottawa at present at $6.99 million. The upscale condominium is gaining ground with empty nesters and retirees in the city’s downtown core—a reality best illustrated by the upswing in sales.
Design has improved tenfold in recent years, with newer, architecturally–signifi cant units that offer innovative fl oor plans and countless amenities moving quickly. The highest-priced condominium is currently listed for sale at $1.7 million in Downtown Ottawa. Diplomats, executives, politicians, entrepreneurs and professionals once again lead the charge for luxury accommodations—and the trend is expected to continue for the remainder of the year. Strong economic fundamentals will continue to support a vibrant housing market—and a robust high end—throughout 2010, with sales forecast to shatter the existing record set in 2009.
Video at http://www.remax-oa.com/MediaNewsroom/Pages/ReadMore.aspx?ItemID=57
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