Sotheby’s International Realty Canada released its report on the state of the country’s luxury real estate market this week.
According to the report, the luxury real estate market is now set to favour buyers. The supply of high-end condominiums is outstripping demand, particularly in Toronto and Vancouver.
“This fall, homebuyers and investors are set to encounter some of the most favourable conditions in years for purchasing or upgrading their homes as top-tier property listings supply increases, interest rates decline, and housing prices stabilise or even decrease in certain communities,” said Sotheby’s International Realty Canada CEO Don Kottick.
Toronto, Canada’s largest city and luxury real estate market, saw overall real estate sales over CA$4 million remain steady year-over-year from July 1 to August 31.
Calgary and Montreal’s markets both saw significant improvement, with all luxury housing sales surging. Housing demand in Calgary was exceptionally high, and sales of properties over CA$1 million were up 31% year-over-year.
Vancouver’s luxury real estate sales fell during the July-August period, and were 13% lower than in the same period last year. According to the report, this was likely due to high prices and uncertainty around British Columbia’s elections, held last week.
“Although we expect the luxury market to remain largely stable in the coming months, over the longer term, there is no doubt that population growth will intensify competition for housing,” Kottick said.
“This means that there is an opportunity to take advantage of the favourable homebuying conditions we are seeing today.”
Sotheby’s is privately held.