The market for homes priced over $1 million is benefitting from the current solid fundamentals in the Canadian economy including the strong labour market.
Sotheby’s International Realty Canada’s 2019 Top-Tier Market Forecast paints a generally positive picture for the market.
The Greater Toronto Area is showing particular strength with growth in sales of luxury homes rising 29% year-over-year in July and August. Gains were seen across property types with $1m+ condo sales up 13%, attached up 45%, and single-family homes up 29%.
Vancouver is set for a rebound this fall, as pent-up demand transfers to sales thanks to more affordable prices. Sales of $1m+ homes gained 5% for condos, 44% for attached, and 32% for single-family homes compared to a year earlier in July and August. That meant an overall 25% gain for Vancouver’s luxury homes activity.
There was little change for Montreal’s top tier with a 1% incremental year-over-year increase over the summer due to a lack of supply. But in the first two weeks of September, there was a 38% year-over-year surge. Inventory is expected to dampen sales this fall.
For Calgary, there is not expected to be much change for the luxury market given the region’s economic conditions.
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