Number of Canadians Embracing Life in the 'Lap of Luxury' Rises

Carriage Trade Report finds that sales of luxury homes far outpaced the general market across Canada – year-over-year unit sales more than doubled in Calgary, Edmonton and Halifax

TORONTO, November 24, 2006 – Canadians are embracing luxury living more than ever before - and if they are not currently living in a luxury home, many aspire to someday live in the lap of luxury. As a result, the number of unit sales of luxury homes has skyrocketed in Canada's major markets, according to the Carriage Trade Luxury Properties Report released today by Royal LePage Real Estate Services. The report found that there has been a surge of unit sales in all markets examined, with the greatest increases occurring in Calgary, Edmonton and Halifax, which all reported sales increases of more than 125 per cent, year-over-year, in the first three quarters of 2006.

If the aspirations of Canadians play a factor, sales of luxury homes will not diminish anytime soon. The report, which includes a market analysis of trends and activity in major markets across Canada, combined with a national omnibus poll (conducted by Maritz Research Canada), found that over one-third (37%) of Canadians aged eighteen and older, currently live in a luxury home, plan to buy a luxury home soon, or aspire to one day live in a luxury home.

“The pronounced increase in the number of luxury homes sold across the country is a strong reflection of Canadians' confidence in the economy and the real estate market,” said Phil Soper, president and CEO, Royal LePage Real Estate Services. “For the substantial sums that these homes command, buyers have come to expect distinctive properties outfitted with luxurious amenities, where it is clear that painstaking attention has been paid to every detail.”

When asked, “If you were purchasing a luxury home, what would be the most important criteria you would consider when choosing this type of home?” Canadians cited: investment potential (25%), proximity to excellent schools (19%), the prestige of the neighbourhood (17%), luxurious amenities throughout the house and the size of the house (11%) and the prominent neighbours (8%).

Carriage Trade, a Royal LePage luxury brand, provides distinction for the most exceptional homes on the market. In order for a home to meet the Carriage Trade distinction, it must be situated in a prestigious, sought-after neighbourhood, feature high-end amenities and priced within a predetermined range.

Added Soper: “House values have appreciated much more quickly than the underlying economy for much of this decade. The Carriage Trade brand is a unique way for Royal LePage Realtors to raise the profile of special homes which are not only priced in the upper end, but also exhibit unique features and amenities that set them apart from other properties. Realtors using the Carriage Trade brand are experienced working with exceptional homes and have access to proprietary tools enabling them to succeed in this segment.”

In terms of the feature that would be the most important to Canadians if they were purchasing a luxury home, a commercial style kitchen assumed top rank (21%) in the poll. Interestingly, a gender divide was evident when it came to cooking as 26 per cent of women cited the commercial style kitchen as the most important feature, compared to 15 per cent of men. The men's den prevails with 11 per cent of males citing the luxury in-home movie-viewing theatre as the feature that would be most important to them if they were purchasing a luxury home, compared to only five per cent of females.

The poll also found additional features that would be of most importance to Canadians if purchasing a luxury home to include an indoor or outdoor pool (14%), smart wiring (12%), heated floors and driveway (11%) and a fitness centre/pilates/yoga studio and luxury in-home movie theatre (both at 8%).

View Full Report

Methodology
Maritz Research Canada conducted the Carriage Trade Luxury Properties Report poll. Three proprietary questions were included over one wave of Omnitel, the national Canadian omnibus of Maritz Research Canada.

In total 1,004 Canadians were surveyed between November 16th to 19th, 2006. All interviews were conducted among a randomly representative sample of adult Canadians. With a sample of this size, results can be considered accurate to within +/- 3.10%, 19 times out of 20.