We are happy to inform you all that Canada's Luxury Market is thriving country-wide!
The Penthouse Queen's team has searched high and wide for information to show you that right now, the luxury market is the best to invest in! The luxury home market activity in Canada is increasing, with buyers benefiting from lower prices. Despite a disconnect between buyers and sellers, 90% of markets saw an increase in high-end sales, with double-digit growth in over two-thirds of them. This is driven by lower property values, strong equity gains, and downward interest rates.
Markets have ample supply, but some areas have low inventory at high price points. The spring market has boosted buyer interest in new properties, but chronic supply issues of entry-level luxury products will persist. Equity remains a key factor in the market, driving demand at the top end. Buyers who purchased in 2018 and 2019 are well-positioned, with equity rising by nearly 43% by the end of 2023.
Younger buyers are relocating to the upper end of the market, with demand for newer, turnkey properties in popular areas. People are seeking more space and less congestion, with acreage properties making a comeback in London, Ottawa, Edmonton, and Saskatoon. Foreign buyer activity has fallen since the January 2023 Foreign Buyer Ban, but those in pricier markets are looking in smaller centres like London or Alberta. The Bank of Canada's 10 rate hikes were necessary to achieve this objective, but supply remains at historical lows.
There has been increased buyer enthusiasm in the spring market, but challenges persist, particularly in luxury price points, particularly in the Greater Toronto Area due to tax implications.
We have a great selection of luxury properties on our website. Interested? Check them out!
