Toronto’s luxury housing market is soaring, Vancouver to rebound

Friday, September 27th, 2019

Sotheby’s International says solid fundamentals are supporting the market

Steve Randall

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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