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'Luxury' sales stay strong in Vancouver

By Michael Mui, 24 Hours Vancouver

Overseas investment is pushing the sale of luxury homes. (FILE PHOTO)

Overseas investment is pushing the sale of luxury homes. (FILE PHOTO)

Vancouver homes in the “luxury” category are selling faster and at higher prices than last year thanks to a strengthening economy that continues to attract foreign investment, according to a real estate company report.

Sotheby’s International Realty Canada CEO Ross McCredie said on Monday higher-end market homes worth $4 million or more continue to attract significant numbers of foreign investors — as many as one out of every two sales.

According to the company’s report released Tuesday, nearly a quarter of homes worth $1-2 million were sold above the asking price. Homes between $2-4 million had double the number of people buying above the list price at 16.42%.

Meanwhile, 8.59% of homes worth more than $4 million were sold above the pricetag.

In all categories, sales in the first six months of 2014 exceeded numbers from the first and second halves, respectively, of 2013. The average number of days a home remains on the market has also fallen slightly.

“There’s a lot of confidence in what people are seeing right now,” McCredie said.

“A year ago, we just came off an election and people were uncertain about where the economy was going, (but) unemployment is low, you’re seeing a lot of foreign investment, you’re seeing companies invest here.”

He said the numbers dispute calls for major price correction in the Vancouver condo market as demand is still strong.

“Canada, especially Vancouver, is a gateway now to Asia and we continue to see that just getting far stronger every year.”


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