York Region Luxury Real Estate Market Report Q209

LivingNORTH OF THE CITY

A Quarterly Market Analysis of York Region’s Executive, Estate, and Acreage Properties

Local Expertise, Global Connections

Vol. 1 Issue 3

A DISTINCTIVE PROPERTY DESERVES A DISTINCTIVE MARKETING PLAN.

Sotheby’s International Realty brings property marketing to a new level. We offer a comprehensive, global approach to advertising, utilizing the strength of our international network to reach as many qualified potential buyers as possible. Our marketing programs include:

PRINT MARKETINGWe have an in-house team that will create unique and high-impact marketing materials to complement our sales approach to attract qualified buyers to your home. Our clients benefit from exclusive corporate rates and prime placement in local, national, and international publications including the Globe and Mail, Architectural Digest, Robb Report, Preview Magazine, New York Times, Gourmet, International Herald Tribune, The Wall Street Journal and Country Life. DIGITAL MARKETINGYour property will receive online exposure on sothebysrealty.ca and sothebysrealty.com, as well as on a number of other highly trafficked sites including those of the New York Times and The Wall Street Journal.

NETWORK MARKETINGThe powerful global marketing and referral resources of Sotheby’s International Realty, combined with our sophisticated marketing programs, provide highly effective marketing strategies for home sellers. In addition to the various print and digital media opportunities, your property will be showcased in our network of Canadian and international offices.

PUBLIC RELATIONSDoes your home have a story to tell? By working closely with a distinguished public relations firm, you can gain additional international exposure for your property in some of the world’s most respected publications.

Sotheby’s was founded in London in 1774 as an auction bookseller. It is currently represented in over 35 countries and conducts auctions on five continents. Sotheby’s went public and listed on the New York Stock Exchange in 1988.

SOTHEBY’S INTERNATIONAL REALTY: A HERITAGE RICH IN HISTORY

A PRESTIGIOUS BRAND BUILT ON A 260-YEAR REPUTATION

Sotheby’s International Realty® was founded in 1976 and its early mission was to augment the auction business by offering a complete package of estate disposition services.

Today, Sotheby’s International Realty operates in more than 500 offices in key residential and resort markets in 39 countries.

Sotheby’s International Realty Canada is locally owned and operated by some of North America’s most experienced professionals. We currently have ten offices nationwide, with two located in Ontario. We provide our clients with the highest standard of professional, intelligent real estate services.

THE SOTHEBY'S STORY

Allison ParentM.B.A., B.A.Sc. (Civil Eng.)Sales Representativee. [email protected]. 416.910.4507www.allisonparent.com

Lisa ClarkB.A.A., e-PRO®

Sales Representativee. [email protected]. 416.258.6053www.lisaclark.ca

LOCAL EXPERTISE, GLOBAL CONNECTIONS

What's my home worth?

What a difference a few months make. With the cold weather behind us and the beauty of an Ontario summer in our midst, optimism in the real estate market prevails. If you have decided to put your home on the market in the coming months, perhaps you already have a sale price in mind. You may have researched properties currently available for sale in your neighbourhood, or have calculated how much you spent to purchase your home and the dollars you've invested in renovations and upgrades. But is this price realistic for a timely sale?

There are many factors that we consider when determining a suggested market value range for a home. One of the most common factors includes looking at comparables; homes that have either sold, or often more importantly, have failed to sell in a given time period in a certain area. Comparables can provide a good baseline for determining market value, however, because real estate is so location specific, a sale on one street can have little relevance to the same style of home on a neighbouring street. Supply and demand, absorption rates, features of the home, and seller conditions are prominent items to review.

Pricing a luxury home can be even more challenging because the exclusivity and the high degree of customization often renders few -- if any -- relevant comparables. In the ultra-luxury category (over $10,000,000 CDN), less than 60 properties are for sale in the whole country. For this type of home, replacement cost, local and world market conditions, and professional third-party appraisals are all utilized and assessed.Highest and best use is another model that we explore. In the case of properties with acreage, subdividing and/or developing the land might make the most sense. For others, converting from agricultural to commercial zoning could be the best route. Of course, zoning regulations always need to be explored and considered.

Pricing a property is just one part of a successful sale. We invite you to contact us for a complimentary consultation to learn more about the Sotheby's brand, and our approach to marketing distinctive homes.

Best regards,

If you would like to receive a complimentary copy of International Architecture and Design, Sotheby’s International Realty RESIDE Magazine, or Sotheby’s Preview, please call or email us (contact information noted above).

A Review of Second Quarter 2009 Vol 1 Issue 3

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Although we suspected that the market was beginning to turn around with the appearance of a Balanced Market in the first quarter of 2009, demand has continued to increase throughout the second quarter translating into today’s strong Seller’s Market. In some high-demand areas with attractive price points (mainly entry-level homes), demand outweighs supply and as a result we are seeing bidding wars for many York Region homes.

In comparison to Q2-08, the total number of units available for sale actually decreased by 20% in Q2-09 - the first year-over-year inventory decrease since March 2008. During the month of June, inventory was 35% lower than the previous year. This dramatic change indicates that the surplus inventory evident in the past three quarters has finally been consumed.

The second chart shows the number of detached homes sold each month. We have seen an overall increase of 22% in unit sales in the first quarter of 2009 versus the same period in 2008, with the rate of increase widening throughout the quarter. Unit sales in April 2009 were virtually equal to those of April 2008, while during June sales increased a remarkable 52% over last year. In fact, June 2009 sales were actually 15% higher than those in June 2007!

The final chart outlines the Sales-to-Inventory ratio for York Region’s real estate market. To calculate the ratio, we take the total number of sales in a given time frame and divide that by the total inventory for the same period. The general consensus in the real estate industry is that a balanced market occurs when this ratio lies between 15% and 25%. Although we had experienced a short-lived Buyer’s Market from October 2008 to February 2009, we moved into a Balanced Market in the first quarter of 2009, and are now experiencing a strong Seller’s Market, with a Sales-to-Inventory ratio of 58% in June 2009.

A rtfully uniting extraordinary properties with extraordinary lives

LIVING NORTH OF THE CITY

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LUXURY MARKET REPORT

A total of 284 detached homes in southern York Region* sold for $750,000 or more in the second quarter of 2009, down only 20 units over the same period in 2008, and more than three times the number that sold in the first three months of 2009. Two homes broke the $4 million sales price barrier this quarter – a $4.2 million home in King, and a $4 million home in Vaughan. The following section provides an overview of properties listed at or sold for $750,000 or greater during the second quarter of 2009.

AuroraThe Aurora area currently has 71 properties for sale in the $750,000+ price range. In the second quarter of 2009, 19 luxury properties sold, versus 16 in the same period of 2008. Days on market increased to 56 days, up from 20 days in 2008. The median sold price was $1.15 million, with the top sale in the quarter for this community at $2.095 million. KingIn the second quarter of 2009, 34 properties sold for $750,000 or more, almost double the volume during the same time period in 2008. Median sale price was $926,300 - a decrease of five per cent over the same quarter in 2008. Days on market were down from 50 to 41. The highest sale for the community was $4.2 million, compared with $3.75 million in 2008. There are currently 101 top-tier homes available for sale, with the highest listing at $4.85 million. NewmarketNewmarket experienced a slight increase in median sale price in the second quarter of 2009, from $811,500 in 2008 up to $830,000 in 2009. The top sale in the second quarter of 2009 in Newmarket was $925,000. Eight luxury properties are currently on the market, with the highest priced listing at $915,000. Richmond HillIn the second quarter of 2009, 92 properties sold, down from 114 sales in the second quarter of 2008. The median sale price was $887,000, and properties were on the market for 31 days. The top sale in the quarter in Richmond Hill was $3.5 million, compared with a top sale of $2.45 million in the same period in 2008. The top-priced listing is currently at $3.999 million. ThornhillThirty-six properties sold in Thornhill, with the highest sale reaching $1.9 million. Sales volume was down slightly, from 41 units in the second quarter of 2008 to 36 in 2009. The median sale price was $960,000, up 8.5% over 2008. Eighty-eight properties priced at $750,000 and above are now available for sale. The highest priced listing in Thornhill – and for the entire study area – is an estate home listed at $9.38 million. Unionville/MarkhamFifty properties sold in Unionville and Markham, with the highest sale reaching $1.44 million. Sales volume was up slightly, from 47 units in 2008 to 50 in 2009, as was days on market – from 27 days in 2008 to 29 days in 2009. The median sale price was $845,000, equal to that of 2008. Seventy-five properties priced at $750,000 and above are now available for sale. The highest priced listing in the area is $2.899 million. VaughanVaughan has 93 top-tier properties for sale. In the second quarter of 2009, 31 units sold, down almost 30% from the 44 sales achieved in the second quarter of 2008. Median sale price was down from $900,000 in 2008 to $850,000. However, the top sale came in at $4.0 million – almost double the top sale of $2.18 million in the second quarter of 2008. The top listing currently offered for sale is at $4.78 million. Days on market remained fairly steady, from 24 days in 2008 to 25 days in 2009. Whitchurch / StouffvilleThe Whitchurch-Stouffville area has 103 properties for sale in the $750,000+ price range. Sales volume increased from 15 sales in the second quarter of 2008 to 19 in 2009. The median sold price in this area was $1.01 million, with the top sale at $1.550 million. This represents a 6.3% increase in median sale price. The highest listing is currently offered for $4.25 million. Median days on market dropped to 39 days from 47 days.

*Note: Our commentary is based on detached residential properties listed on the Multiple Listing Services (MLS ®) in TREB map areas N01-N08 and N10-N14, with a sold price of $750,000 or greater, that sold during the months of April, May, and June 2009. Data is accurate as of June 30, 2009. For days on Market calculations, we used the median.

To learn more about our featured properties, please visit our international website, www.sothebysrealty.com, and enter the Property ID # associated with each property.

19 Awesome Again Lane, Aurora, ON Property ID# 4000009892Located in the gated community of Adena Meadows, this bungalow with loft backs onto the Magna Golf Course. Complete with a stunning basement that includes a double-sided stone fireplace, wine cellar, media room, and more, this house does not disappoint!

10 Sirona's Lane, Aurora, ONProperty ID# 4000009910This elegantly decorated residence backs onto the exclusive Magna Golf Course. Complete with a separate in-law/nanny suite in the walkout basement, this house contains an indoor conditioning pool & outdoor pool, spa, and waterfall.

1541 Haist Street, Fonthill, ON Property ID# 4000006740In the heart of wine country, this tudor mansion is truly unique. It's 5-storey turret overlooks the sunken courtyard, and inhabitants can view the numerous tiered gardens from virtually any room in the house.

OUR FEATURED PROPERTIES

36 Kraft Drive, Waterloo, ON Property ID# 4000009958Enjoy the peace and tranquility of country living, minutes from the city. This beautiful estate home spans 11,000 square feet, and sits on 112 acres of landscaped grounds, overlooking Waterloo’s Grand River. Features include dramatic custom millwork and finishings throughout, a spectacular indoor pool with retractable glass roof, a tennis court, cabana, walking trails, and four ponds. Live and entertain in grand style.

To learn more about our featured properties, please visit our international website, www.sothebysrealty.com, and enter the Property ID # associated with each property.

553 St. John's Sideroad West, Aurora, ON Property ID# 4000007315Located on approximately three beautifully landscaped acres, this home has a fully self-contained apartment above the 3-car garage — perfect for use as an in-law or nanny suite!

34 Royal Oaks Crescent, Huntsville, ONProperty ID# 4000010959Minutes from Deerhurst Resort in the heart of Muskoka lies this spectacular custom-built home with stunning views from every window! Exceptional finishing throughout, including 100 year old elm flooring, pot lights, quartz counters, Douglas fir exterior doors & window frames.

OUR FEATURED PROPERTIES

ABOUT US

Lisa's interest in assessing market conditions and developing pricing strategies is largely a result of her background prior to joining Sotheby's - she was a consultant with an international consulting firm, and also owned her own consulting business. Lisa holds a Bachelor of Applied Arts degree, and is a certified e-PRO(R). She is a member of the Institute for Luxury Home Marketing, the Markham Board of Trade, and the Vaughan Chamber of Commerce. Lisa grew up in Woodbridge, and is a long-time resident and active community member in Thornhill, where she currently lives with her husband and four children.

Over the years, Allison has worked with the country's top-ranked luxury real estate companies offering high-quality service to clients in all price ranges. Having formerly worked in the high-technology industry in a business leadership role, she is accustomed to working in fast-paced, high-stress environments. During her 10+ years in this industry, Allison managed client accounts that generated over $100 MILLION in annual revenue. Allison holds an M.B.A. (Master of Business Administration) degree from the Schulich School of Business at York University, as well as a Bachelor of Applied Science degree in Civil Engineering from the University of Waterloo. She currently resides in Newmarket with her husband and two sons.

Allison ParentM.B.A., B.A.Sc. (Civil Eng.)Sales Representativee. [email protected]. 416.910.4507www.allisonparent.com

Lisa ClarkB.A.A., e-PRO®


Please accept this invitation to call us and discover the difference of Sotheby’s International Realty®.

We look forward to representing you.

For further information, please contact:

Sotheby's International Realty Canada, Brokerage497 Davenport Road

Toronto, ON M4V 1B7416.960.9995

sothebysrealty.ca

Sotheby’s International Realty Canada, Brokerage. Independently owned and operated. If your property is currently listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers.

llison ParentM.B.A., B.A.Sc. (Civil Eng.)Sales Representativee. [email protected]. 416.910.4507www.allisonparent.com

Richmond Hill, Aurora, King, Caledon, Whitchurch-Stouffville, Newmarket and Uxbridge

A isa ClarkB.A.A., e-PRO™


Thornhill, Richmond Hill, Woodbridge, Kleinburg, Markham, Vaughan and Unionville

L

York Region Luxury Real Estate Market Report Q209

Real Estate

Transcript of York Region Luxury Real Estate Market Report Q209