Canada’s real estate market is navigating global economic instability, but the luxury single-family home segment is witnessing a surprising revival, according to Sotheby’s International Realty Canada. This sector has seen increased activity from buyers and investors who had previously taken a step back, signalling a robust interest in high-end homes despite broader market challenges.
Sotheby’s president and CEO, Don Kottick, notes a significant uptick in luxury home sales, particularly in Canada’s major cities. Buyers are leveraging their stronger negotiation position to reap the benefits of single-family home ownership, prompting sellers to accommodate the buyers’ renewed interest and discerning demands.
The report from Sotheby’s shows a third-quarter surge in 2023, especially in metropolitan hubs like Calgary, Toronto, Vancouver, and Montreal. In contrast, the luxury condo market has cooled, with buyers looking towards different investment avenues.
The stats reveal Calgary as the frontrunner in luxury home sales, with a staggering 69% rise in $1+ million home sales for July and August and an impressive 106% increase in September, year-over-year. The Greater Toronto Area saw a 32% increase in $4+ million sales in the same summer months, with a more moderate 3% increase in September. Vancouver’s luxury market also peaked in the summer with a 96% rise, but September brought a 29% decline in high-end sales. Montreal’s market experienced consistent growth, with a 31% increase over the summer and a 4% increase in September.
Kottick predicts that the major metropolitan areas will continue to grow, propelling demand for luxury and standard housing alike. The resilience of luxury home buyers is likely to stay strong, with Toronto expected to lead the luxury real estate market, followed by Calgary. Montreal and Vancouver will have to adapt to the preferences of buyers in a dynamic market.
Sotheby’s emphasizes that the interplay of local supply and demand will be critical in shaping the market’s future. In an era of global uncertainty, the Canadian luxury single-family home market is proving to be a beacon of stability, highlighting the continued value placed on high-quality homes.
Be First to Comment