Amid accelerating sales activity and price gains across the nation’s largest cities, the Canadian luxury housing market is expected to post a strong performance this spring, according to Sotheby’s International Realty Canada.
This is despite the impact of the global COVID-19 emergency, more than a year since it took hold.
“The compounding effects of dramatic changes in the housing preferences of affluent Canadians, new demands across multiple generations of homeowners and buyers, significant cash accumulation, easy access to borrowing, and pent-up local and international demand, are rippling across the market,” Sotheby’s said in its latest report.
Metropolitan luxury real estate markets, in particular, are poised for sustained robustness in the next few months.
“In most markets, the ceiling for sales activity will be capped by lack of inventory rather than consumer demand,” Sotheby’s noted.
The Greater Toronto Area is projected to be the epicentre of this strength, with sales in the $4-million-plus segment spiking by 157% annually during the first two months of 2021.
“During this time, luxury single family home sales over $4 million rose 203% year-over-year,” Sotheby’s said. “Meanwhile, the region’s luxury condominium market reflected resilience, and early March data reflects a segment poised to gain ground… Sales in the first 15 days of March underscored the strength of the GTA’s $1-million-plus condo market sales, as sales increased 110% year-over-year.”
This high-intensity environment is expected to last for quite a while, Sotheby’s predicted.
“We are seeing foundational changes in the home and lifestyle preferences across every generation of Canadian, and a level of willingness to invest in home buying and renovation that will permanently improve the quality of housing stock, and therefore prices,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada.
“We are forecasting multiple waves of consumers in the coming months, both local and international, who have a desire for Canadian real estate ownership that has never been stronger. Most importantly, these potential buyers have unprecedented access to cash and low-cost borrowing that will enable them to engage in the market in months to come.”