The Greater Toronto Area is expected to lead in sales of Canada’s luxury home market, with sales volume, velocity and pricing of the $4-million segment projected to surpass previous years’ record-breaking performance, according to Sotheby’s International Realty Canada. Vancouver’s $1 million-plus real estate market is anticipated to normalize in the coming months, while cautious optimism returns in Calgary. Montreal’s market for real estate over $1 million is expected to continue its course of modest, healthy growth.
Data from Sotheby’s International Realty Canada predicts the GTA will see the greatest year-over-year gains in sales over $1 million, including condominiums, attached and single-family homes. In January and February 2017, the GTA continued its record-setting sales streak, posting the strongest year-over-year gains of Canada’s four major metropolitan markets. Home sales over $1 million increased 87 per cent to 3,043 properties sold, while sales over $4 million increased 144 per cent to 66 units sold year-over-year.
Canada’s luxury real estate market continues to face unprecedented uncertainty this spring, influenced by government policy, shifting signals on potential new regulation, and geo-political headwinds on a continental and global scale. In spite of these macro-influencers, local market factors such as inventory levels, regional economies and employment, consumer confidence and hyper-local demand will continue to be the main influencers of top-tier market performance in spring 2017.
“The Toronto real estate market has pulled into a league of its own, and we expect to see all-star performances across every luxury segment – single-family and attached homes, as well as unprecedented performance in the luxury condominium market,” says Brad Henderson, president and CEO of Sotheby’s International Realty Canada. “At the same time, rising Canadian consumer optimism will add positive colour to the markets in Vancouver, Calgary and Montreal in the coming months.”
High performance is anticipated for high-end highrises this spring. Shifts in demographics, strong consumer and investor confidence, and comparative affordability compared to single-family home prices has propelled condo demand, resulting in bidding wars and robust sales. Across the GTA, early 2017 condo sales volume over $1 million exceeded 2016 levels by 104 per cent, with 167 units sold.
The $1 million-plus market for single-family homes is projected to sustain heated growth. The first two months of 2017 saw 86-per-cent year-over-year gains in sales volume in the GTA, to 2,876 units. The $4 million-plus luxury home segment is expected to surpass previous gains: in the first two months of 2017, sales volume rose 158 per cent year-over-year to 62 units sold in the GTA.