5833 replies to this topic

[Mike K.]

Does Mr Cal not realize that apartment buildings are also not the primary residence of their owner?

This density ruins Victoria schtick is getting tiring.

[Mike K.]

Christie's International Real-Estate has rated Victoria as the second hottest luxury real-estate market in the world, only behind Toronto.

 

Victoria now the second hottest luxury real-estate market in the world

http://victoria.citi...t-in-the-world/

[Szeven]

Christie's International Real-Estate has rated Victoria as the second hottest luxury real-estate market in the world, only behind Toronto.

Victoria now the second hottest luxury real-estate market in the world
http://victoria.citi...t-in-the-world/

Did you read their methodology? I didn't, but from the article it seems like a price % change and DOM % decrease type formula. Hard to compare Toronto and Victoria (and presumably real cities), but nonetheless it shows people are finally buying outside the average house band. I had wondered if that was going to happen.

[LeoVictoria]

Homes over $1M is a terrible definition of luxury homes.  

[VicHockeyFan]

Homes over $1M is a terrible definition of luxury homes.

But that would describe 95%+ of Canadian homes, no?

[Mike K.]

Quote: The definition of "luxury real estate" varies by market, but for Toronto (in 2016) it's defined as properties worth $3 million (U.S.) and above. The average worldwide starting point for luxury real estate is $2.1 million (U.S.).

So I'd imagine their definition for Victoria's luxury homes is well above $1-million US. Even at $1.35-million CAD, that buys some pretty sweet house.

[LeoVictoria]

The study says "Luxury Thermometer Methodology: Six factors for each primary and second-home resort housing market were synthesized to assess the ‘health’ of the $1M+ market. Factors were weighted in two categories. The rst was given a weight of 80% and included luxury sales velocity metrics (growth in $1M+ unit sales in 2016 over 2015, change in the average number of days on market for $1M+ homes in 2016 over 2015, change in average $1M+ sales price in 2016 over 2015 and change in the average home price for the entire market in 2016 over 2015). The second category was given a weight of 20% and incorporated other luxury real estate market health indicators (absorption rate and average number of days on the market for $1M+ homes in 2016)."

So I think they are doing $1M as luxury at least for the "Luxury Thermometer" to rank cities.

Edited by LeoVictoria, 11 May 2017 - 06:04 AM.

[Szeven]

Well Victoria would score highly in the velocity metrics as regular houses are worth 1m now. The growth of 1m+ sales would be astronomical 2015 to 2016

[LeoVictoria]

Well Victoria would score highly in the velocity metrics as regular houses are worth 1m now. The growth of 1m+ sales would be astronomical 2015 to 2016

 

yeah the measure sucks.   Is toronto the hottest luxury market by their definition of $1M+ homes posted above?  Yes.   Would anyone in their right mind classify a $1M home in Toronto as luxury?  More like a hovel.   

 

So in fact their "Luxury market thermometer" has nothing to do with measuring the performance of luxury homes if their methodology is as stated.

 

The purpose of the report is to sign up people to the Christie's email list.    It worked, I signed up.  

Edited by LeoVictoria, 11 May 2017 - 06:33 AM.

[Mike K.]

A million USD home is $1.35-million CAD. If you can afford that, you're making some serious coin and live a life of luxury. You might not be jetsetting across the world but you've just bought a $1.35-million home, for God's sake.

Luxury means whatever we want it to mean. It doesn't need to pass Leo's Luxury-o-meter test

[North Shore]

Nonsense, Mike.

 

The people behind my house just sold for ~ $1M.  IIRC, they bought at the same time as I did - about 15 years ago, for the high 2s to mid 3s.  Assuming that they can hold the same mortgage now, that they've paid off, or taken a big bite out of, their previous mortgage, and that their salary has gone up somewhat in the intervening years (none of which are outrageous assumptions) they are well within striking range of a 'luxury' $1.3M house.  Admittedly, on a global, and historical, scale that is 'luxury' - but in a North American context, I just saw a couple who were lucky enough to buy in a good location, worked hard at their jobs, and put in evenings  and weekends fixing up their yard, and doing renovations..

[Mike K.]

So in other words, they're wealthy enough to afford a $1.35-million house.

 

$1.35-million doesn't buy you a little shack. It buys you a beautiful home in an up-scale inner-city Victoria neighbourhood. The home may not be Elton John's idea of luxury, but it sure would be for most of us regular folk.

[LeoVictoria]

A million USD home is $1.35-million CAD. If you can afford that, you're making some serious coin and live a life of luxury. You might not be jetsetting across the world but you've just bought a $1.35-million home, for God's sake.

Luxury means whatever we want it to mean. It doesn't need to pass Leo's Luxury-o-meter test

 

It's actually a common sense test that Christie's understands full well they just didn't use their own measure for the "Luxury Thermometer"

As they said, a luxury home costs different amounts depending on the area.  $10 million to qualify for luxury in Monaco, much less in other areas but above $1M in most areas.

 

So why did they then turn around and use a completely nonsensical cutoff of $1M in their methodology to rank how hot a market is?  

 

Of course if you would like to tell me that this is a luxury house ($1M in Toronto) then by all means continue your argument.

[Mike K.]

Their cutoff for the Toronto market is US$3-million, or $4-million CAD.

 

This is a listing in Toronto for $3.4M CAD. Not quite the shack you posted, but also not Dick and Jane's first starter home. But nevertheless, even it didn't make the cut.

 

[LeoVictoria]

Their cutoff for the Toronto market is US$3-million, or $4-million CAD.

 

This is a listing in Toronto for $3.4M CAD. Not quite the shack you posted, but also not Dick and Jane's first starter home. But nevertheless, even it didn't make the cut.

 

Read the methodology again.  They don't use the 3.4M cutoff to rank the markets by hotness.   They use a $1M cutoff and that is objectively nonsense.    if they would have used the market specific values I wouldn't have any issues with it.

[FirstTimeHomeCrier]

Some samples of what you can get for around 1.35 million right now:

 

https://www.realtor....Columbia-V8Z5A2 ($1.28 million for a brand new 6-bedroom, 4000 sq foot home in Strawberry Vale; highlights of the description: "a chefs dream kitchen," "large mast w/ spa like ensuite w/ heated title fls")

 

https://www.realtor....Columbia-V8N1V5 ($1.33 million for a 5-bedroom, 2700 sq foot home in Gordon Head, walking distance to the ocean; this is another one with a "spa-like ensuite" and "top of the line appliances"

 

https://www.realtor....Columbia-V8X5G7 ($1.298 million for a 4-bedroom, 4000 sq foot home in Broadmead; features include "3 gas fireplaces" and "wine cellar")

 

https://www.realtor....Columbia-V8N2L4 ($1.39 million for a brand new 5-bedroom, 2400 square foot home in Gordon Head; features "gourmet kitchen with quartz countertops" and a legal suite)

 

Those sound pretty luxurious to me!

[Greg]

[...]

 

As they said, a luxury home costs different amounts depending on the area.  $10 million to qualify for luxury in Monaco...

 

[...]

 

City Council likes to deploy solutions based on European models to resolve Victoria problems, so maybe they should look into how Monaco is addressing the housing affordability issue.

[Mike K.]

Read the methodology again. They don't use the 3.4M cutoff to rank the markets by hotness. They use a $1M cutoff and that is objectively nonsense. if they would have used the market specific values I wouldn't have any issues with it.

It identifies the price pretty clearly:

"The definition of "luxury real estate" varies by market, but for Toronto (in 2016) it's defined as properties worth $3 million (U.S.) and above. The average worldwide starting point for luxury real estate is $2.1 million (U.S.)."

[lanforod]

It doesn't seem to say specifically what the cut off is for Victoria. I suspect it's higher than 1M USD though. I'd peg it around 2M CAD here to get into luxury. 

[Mike K.]

Right, that's what I was thinking (about $2-million). I think they're smart enough to know what the average/median are in each market, and at what percentage above those figures the "luxury" market begins.