Despite home pricing falling across the country, it seems that Canada's luxury Market is fearlessly holding on! Right now we are witnessing this stat in Canada's most in-demand metropolitan real estate markets — Halifax, Montréal, Ottawa, Toronto and Vancouver. The market normalization trend established in the first half of the year (2022) continues across the country.
The Canadian real estate market is beginning to normalize, with price growth plateauing or declining in some areas of the market. Price declines are most common in the conventional market, especially in periphery markets which saw exponential growth during COVID. Well-located, quality inventory continues to increase in value year-over-year, though the growth rate has slowed.
Specialists are forecasting the return of a bustling real estate market once buyers and sellers adjust to new market conditions. It expects this to occur between the second and third quarters of 2023. If low supply is not addressed, this could lead to steady price increases due to demand outpacing supply.
Halifax's luxury real estate market grew in 2022. In 2021, homes priced over $1 million accounted for 2.6 per cent of all units sold. In 2022, this number grew to 4.5 per cent. Condo units sold priced between $1 - 3.99 million also grew, from 13 in 2021 to 20 by 2022.
Montréal's housing market saw sales volume dip by 55 per cent in the second half of 2016 compared to the first half of the year, according to the city's Real Estate Board. Prices for all property types combined held in the $1 - 3.99 million range despite a drop in sales volume.
The $1 million-plus market in Ottawa was the only one to exhibit year-over-year sales volume rise. This sector accounted for 12% of all units sold in 2021, up from 9% the previous year.
The 2022 sales volume of condominiums valued between $1 and $3.99 million in Toronto is up 71% from 2020 but down 18% from 2021.
The demand for condominiums in Vancouver has increased, particularly for units valued between $1 and $3.99 million. In this category, unit sales climbed by 95% year on year, with the first half of the year accounting for 62% of total sales.
Is this the year you plan to enter the luxury market? Have any questions on how to navigate the skyrocketing market? Call me today!