Report finds stability in Canada’s luxury real estate market

TORONTO — Engel & Volkers has reported Canada’s luxury real estate market remains strong despite such headwinds as economic uncertainty and fluctuating interest rates.

The German-based consulting firm reported in its 2023 Mid-Year Canadian Luxury Real Estate Market Report that across the country, there is market stability and sustained demand for a shrinking pool of property.

The report features findings based on data for homes priced over $1 million in five metropolitan real estate markets: Halifax, Montreal, Ottawa, Toronto and Vancouver.

The foreign buyer ban is affecting high-profile athletes and executives who are essentially being forced to rent. In the long run, this could negatively affect high-stakes talent acquisition in Canada, said the firm. Boomers who were expected to downsize are staying put due to a lack of appropriate rental and buying opportunities.

Shovel-ready land and labour shortages are being seen in key Canadian cities and this will continue to affect real estate supply for years to come.

“Premium markets are proving their resiliency to market fluctuations, showing steady growth and stability. This is in part due to sellers holding off on listing properties while real estate markets return to typical seasonal patterns,” stated Anthony Hitt, CEO of Engel & Volkers Americas, in a statement.

Specific findings include:

∙ Halifax’s luxury market has significantly grown since last year. As of June 2023, single-family homes over $1 million comprise close to 10 per cent of the market, compared to 4.6 per cent for all of 2022.

∙ Montreal’s Westmount and Outremont neighbourhoods saw home values grow by nearly $1 million over a 10-year period.

∙ Ottawa’s premium market prices ticked up by three per cent for homes valued between $1 million to $3.99 million from January to June.

∙ Toronto’s average selling price in June for residential class homes priced between $1 million to $3.99 million grew by 3.7 per cent compared to January.

∙ Vancouver seller’s “sit and wait” attitude saw average home prices in the $1 million to $3.99 million segment dip by only 5.59 per cent from February 2022’s high point, signalling a resilient market.