February Market Update

Despite the recession, BC's luxury home market remained strong in 2009. Based on the Greater Vancouver Real Estate Board MLS stats, 31 homes priced over $5 million sold in 2009 versus 25 that sold in 2008. What's more remarkable is that none of these sales occurred in the first 1/3 of the year, when the world's financial markets were seemingly in freefall. Take that period out of the equation and the rate of luxury home sales in 2009 was almost double that of 2008.

The same trend held true throughout the province as luxury home prices bounced back after a slow start to the year.

Bill Dick, Vancouver's managing broker for Macdonald Realty, which sold the 3 of the 5 most expensive properties in the province in 2009, believes a number of factors contribute to a strong luxury market. "Everyone talks about how interest rates are driving this market,” he states, "but out-of-town buyers are the primary force behind luxury real estate."

That said, the luxury market is still subject to the whims of the economy. The move-up process - first-time condo to marital townhouse to family home to dream property - is still built upon first-time buyers entering the market, who, in turn, are most influenced by interest rates. This was most obvious in the beginning months of 2009 as luxury property sales lagged nearly 4 months behind first-time home transactions.

Moving forward, it looks as though the luxury market is poised to remain strong throughout 2010. Western Canada is a pleasant, safe place to live, and out-of-town and overseas buyers will continue to look to this market for both investment and pleasure. And with the eyes of the world focusing on Vancouver, the number of wealthy foreigners who know about Canada's West Coast will only increase.

Top 5 sales in BC according to MLS:

• 1) $15.2 Million
• 2) $14.2 Million
• 3) $11.8 Million
• 4) $11.3 Million
• 5) $10.65 Million

To learn more, please feel free to contact me at the address above.