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🏠 Canadian Luxury Real Estate Markets Show Strong and Stable Growth

Sunday, 30 July 2023 10:19.AM

- Engel & Völkers reports Canada's foreign buyer ban is affecting high-profile athletes and executives -

Engel & Völkers released its 2023 Mid-Year Canadian Luxury Real Estate Market Report today. Amidst economic uncertainty, fluctuating interest rates and forecasts of recession, Canada's most sought after premium markets are not faltering. Across the country, the story is one of market stability and sustained demand for a shrinking pool of property. The report features key findings based on data for homes priced over $1 million in Canada's most in-demand metropolitan real estate markets — Halifax, Montréal, Ottawa, Toronto and Vancouver.

The foreign buyer ban is affecting high-profile athletes and executives, who are essentially being forced to rent. In the long run, this could negatively affect high-stakes talent acquisition in Canada. Boomers who were expected to downsize are staying put due to a lack of appropriate rental and buying opportunities. Homes are now being viewed as generational assets, new for Canada. Shovel-ready land and labour shortages are being seen in key Canadian cities and this will continue to affect real estate supply for years to come.

"Premium markets are proving their resiliency to market fluctuations, showing steady growth and stability. This is in part due to sellers holding off on listing properties while real estate markets return to typical seasonal patterns," says Anthony Hitt, president and CEO, Engel & Völkers Americas. "Quality inventory on the market has sold quickly, with homes commanding multiple offers, despite the current climate. Interest rate changes have had negligible effects on premium markets because buyers tend to pay a large portion of home equity up front. The availability of luxury real estate in Canada continues to shrink and Engel & Völkers will be watching this imbalance."

Halifax's luxury market has significantly grown since last year. As of June 2023, single-family homes over $1 million comprise close to 10 per cent of the market, compared to 4.6 per cent for all of 2022.

Montréal's Westmount and Outremont neighbourhoods see home values grow by nearly $1 million over a 10 year period.

Ottawa's premium market prices ticked up by three per cent for homes valued between $1 - 3.99 million from January to June.

Toronto's average sold price in June for residential class homes priced between $1 - 3.99 million grew by 3.7 per cent compared to January.

Vancouver seller's 'sit and wait' attitude sees average home prices in the $1 - 3.99 million segment dip by only 5.59 per cent from February 2022's high-point, signaling a resilient market.

SOURCE: Engel & Völkers

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