Demand for luxury homes still strong in Canada, real estate company says
Posted on Feb 10, 2014 in Mortgage Market Updates and NewsGarry Marr
The luxury end of the Canadian housing market shows no signs of slowing down, at least according to one real estate company.
Re/Max surveyed 16 Canadian markets and found sales of what it calls “upper end homes” higher in 75% of those markets.
Vancouver, the priciest market in the country, saw an increase of 36% in sales in 2013 from 2012 in homes selling for $2-million and up.
“Canada’s luxury housing market has undergone serious transformation in recent years, setting a new standard for the lifestyles of the rich and famous,” Gurinder Sandhu, executive vice-president and regional director of Re/Max Ontario-Atlantic Canada, said in a statement.
Re/Max says there is “upward trajectory” for home values in Vancouver but expects modest growth this year for prices.
In Toronto, where a luxury home is said to start at $1.5-million, sales were up 18% in 2013 over 2012. The most expensive home sold in the city last year went for $13.4-million for 21,000 square feet in the city’s prestigious Bridle Path area.
In the oilpatch, a luxury home starts at $1-million. Sales of upper end homes in Calgary climbed 34% in 2013 from 2012. Edmonton is a little less pricey for a luxury home with the starting price $750,000 but sales jumped 32% over the same period.
Two cities that reported declines were Montreal and Ottawa. Quebec’s largest city saw a 7% drop in the sale of homes for $1-million or more from 2013 to 2012.
In the nation’s capital, where luxury starts at $750,000 sales were off 1% year over year.
“High-end homes are commanding top dollar in blue chip neighborhoods from coast to coast,” said Mr. Sandhu.