Luxury Market Report – Canada 2015

Luxury Market Report – Canada 2015

Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Montreal and Victoria in the first seven months of the year. Calgary was the exception; sales in the $1 million range decreased 28 per cent over the same period in 2014.

In Canada’s two largest luxury markets, sales of homes $3 million and up saw impressive gains. In the Greater Toronto Area, sales in this range increased by 61 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31.

The increase of sales at the top-end of the luxury market can be attributed to two factors. One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that hasled to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets.

Sample Market – Greater Toronto Area

Luxury InsetThe luxury market in the Greater Toronto Area was very active during the first seven months of the year. Sales of properties over $3 million increased 61 per cent year-over-year. The increase of sales at the top-end of the luxury market can be attributed to two factors.

One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that has led to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets.

Two demographics make up the majority of buyers in Toronto’s luxury market. One is families with older children and parents with professional jobs who have built up enough equity in their previous home to upgrade. The second are families from outside of Canada, primarily China, with school-aged children. These buyers typically choose four or five-bedroom homes and are strongly influenced by proximity to good schools.

A growing trend witnessed in Toronto’s luxury housing market in the first half of the year was infill properties. Looking for the convenience of living downtown with the space and amenities available suburban areas, buyers are increasingly purchasing lots in the city centre, tearing down the existing house and building a larger, more modern one in its place.

» Learn More About Canadian Luxury Markets (PDF)

2015-11-10T15:38:58+00:00November 10th, 2015|INDUSTRY NEWS|