Vancouver’s luxury real estate market shifted after an explosive start to 2022 pushed sales and prices to record levels, as sellers’ high expectations did not match reality and transactions decreased substantially.
Low inventory remains one of the primary challenges in top-tier markets across Canada, according to Sotheby’s International Realty Canada’s Spring 2023 State of Luxury Report.
Toronto
Toronto provides luxury home buyers with access to an expansive selection of high-end properties, all situated within top neighborhoods and offering luxury amenities and services such as private gyms, swimming pools, hot tubs, gourmet kitchens and superb views of top schools. Working with an experienced realtor will help find your ideal high-end property; they may also assist in financing arrangements or any other matters related to buying such an estate.
Toronto’s luxury real estate market experienced significant sluggishness last year, ushering in 2023 as an increasingly buyer’s market. This was due to both pandemic impact and sellers’ elevated price expectations versus actual market conditions widening, thus delaying transactions and in Toronto’s most costly neighbourhoods seeing sales decline by 64 per cent year-on-year compared to same time last year in terms of homes priced over $4 million sold during first quarter 2019.
Canadian real estate markets were hit with an acute supply shortage in 2016, which extended into the luxury segment and resulted in muted sales in cities like Vancouver and Toronto. According to Sotheby’s International Realty Canada president Don Kottick, this shortage caused by new luxury listings was the primary factor; Kottick expects things to turn around this spring as inventory levels increase and interest rates remain at historically low levels.
As with any real estate transaction, when searching for luxury property buyers must set their search criteria and consider fundamental aspects such as location, home size and square footage, upgrades and amenities; in addition to budget constraints. When making this investment decision they should keep lifestyle aspirations in mind when searching.
To successfully sell luxury properties, it is crucial that you understand your clientele and their needs. Luxury buyers tend to be more discriminating and expect an exclusive experience compared to real estate at lower price points; therefore it is necessary to invest in strategic marketing tactics as well as expert knowledge of the luxury market and screen prospective buyers carefully to make sure they are financially qualified and ready to purchase.
Vancouver
As interest rates have risen across Canada, real estate markets across Canada have been negatively impacted; however, ultra-luxury markets in Canada have proven more resilient due to cash purchases of properties rather than mortgage financing allowing buyers to take advantage of low rates now versus later when interest rates increase.
Vancouver continues to attract both domestic and international buyers seeking luxurious lifestyles as well as lucrative investments, drawn by its vibrant economy and culture scene, plus beautiful natural surroundings such as its spectacular transportation system and world-class restaurants and hotels. Luxury home buyers are attracted by Vancouver’s diverse economy and cultural offerings, as well as strong investment potential. The city offers diverse economy sectors as well as vibrant cultural offerings; these make the city a fantastic place for both living and investing alike.
2022 saw continued success for New York’s luxury residential market, although sales activity and price escalation moderated during the second half. Unfortunately, due to limited luxury inventory being introduced into the market and an overall strong economic climate there was a decrease in $4 million-plus home sales which fell 24% year-on-year and 46% year-over-year for properties priced $1 million-plus properties sold each year.
As the housing market shifted into balance through 2022, sellers’ high price expectations and reality of an increasingly normalized marketplace started to diverge, deterring qualified prospective buyers. Properties priced above new norms languished on the market while those that met premier condition and were well suited to adapt with changing landscape received offers, ultimately leading to successful transactions.
JamesEdition makes searching for luxury real estate easy in Vancouver with filters such as price, square footage, number of bathrooms and amenities – as well as saving your searches to receive updates when new listings that match your criteria become available on the market. Start searching now or click here to view all Vancouver luxury homes currently on sale!
Calgary
Calgary’s luxury real estate market is dynamic and diverse, providing convenience, deluxe features and breathtaking views. Finding your ideal property can transform your lifestyle; let a trusted professional help you navigate Calgary’s luxury property market and locate it!
Luxury real estate in Calgary ranges from newly built modern luxury infills, high-end custom detached single-family homes and high-end condominiums and townhomes in master planned golf & country club communities or on large acreage properties to newly established upscale suburban communities offering easy access to shops, restaurants, services and amenities.
Last year, Calgary’s luxury real estate sales defied the trend in major Canadian markets by seeing sales rise across every price segment – including ultra-luxury. Luxury sales rose 16 per cent year-over-year while ultra-luxury saw 50 percent year-on-year growth.
Luxury real estate in Calgary is an attractive investment for both local and foreign investors, due to the city’s favorable economic conditions and strong job market, which attract many professionals, families, and foreign investors alike. Furthermore, Calgary’s prudent mortgage planning policy prevents property bubbles like those seen in the US while enabling non-permanent residents to purchase properties as well.
Calgary’s luxury residential market should continue to perform strongly this year, though interest rate hikes could cause demand for luxury homes to fluctuate and possibly affect sales volumes. By springtime, however, conditions should return to equilibrium in this segment of the market.
Even in today’s challenging economic environment, luxury homes remain highly in demand in Calgary. Their attractive pricing and stable economy draw many foreign buyers while Calgary city government’s focus on improving infrastructure and adding recreational facilities are driving demand further up.
The Starnes Group team boasts extensive experience selling luxury homes in Calgary. Their vast knowledge and understanding of the luxury real estate market have made them leaders in the industry, and are dedicated to providing exceptional services for each one of their clients. Their services range from retirement and relocation specialists, certified luxury marketing experts, in-house mortgage consultants, quality home renovation contractors and superior staging consultants – just to name a few!
Montreal
Montreal’s luxury real estate market was brought back into balance in 2022, following an unprecedented run that generated global demand for both conventional and top-tier residential properties. While some consumers expressed discomfort at shifting market conditions triggered by multiple Bank of Canada interest rate hikes as well as tightening inventory levels, local demand for property remained steady and diverse.
Though new listing activity has dropped off considerably, competitively priced single-family homes and condominiums located in highly desirable neighborhoods continue to draw multiple offers from prospective buyers. A strong economy, solid labor force and world-renowned culture draw both international luxury real estate investors as well as Quebecois who want a safe city environment to call their own.
Sotheby’s International Realty Canada experts predict that once Toronto’s luxury housing market regains equilibrium, it will thrive through 2023 as buyers and sellers who had been sidelined by COVID-19 transition back into active participation in the market. Strong demand for properties strategically priced and marketed will ensure that well-appointed new and resale luxury listings quickly find qualified buyers.
At a time of rising interest rates and fluctuating demand, ultra-luxury properties (defined as properties with an estimated value of $4 million or more) have proven surprisingly resilient, according to Engel & Volkers. According to them, this may be due to investors owning these properties who may not necessarily be tied down to any one location and can therefore more readily adapt terms than traditional owners would be able to.
Kottick remains confident that foreign investment will return as immigration restrictions relax, with luxury real estate purchases by international buyers looking to invest in Canada’s secure and prosperous economy becoming increasingly commonplace. Thus, it’s likely that Montreal’s luxury segment will remain highly desirable, particularly properties with unique heritage or architectural characteristics.
