Saturday, April 08, 2006

Home Sales are Slowing Except for Million-Dollar Homes

Canadians are buying homes that are bigger and contain more luxury features than ever. By some accounts, the million-dollar-plus home is now the strongest segment of many housing markets.

A lot of money is going into high-end housing. Buyers just don't want to compromise their desires. A lot of those desires have filtered down from the luxury home market to more mundane residences. That has contributed to a jump in single-family home prices of more than 13 percent this past year.

The largest areas of million dollar homes cluster in and around big cities. As housing continued to boom throughout 2004 and much of 2005, the number of million dollar homes has climbed considerably.

Low mortgage rates fueled the home renovation mania. Many homeowners refinanced their loan when mortgage rates cratered and some owners took out extra cash to pay for home improvements.


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