Sotheby’s International Realty Canada has just published their bi-annual study highlighting market trends for residential properties with values over $1 million in Canada’s largest urban centres.
The report provides comments on high-end real estate by comparing data for sales volume, average days on the market and percentage of properties sold over asking price for condos, attached homes and single family homes sold between $1-2 million, $2-4 millions and over $4 millions on MLS.
Since the benchmark price for conventional housing is now above $1 million in some metropolitan markets in Canada, the report also presents information on the entry price of luxury real estate, which is on the rise in Vancouver and the GTA.
The report reveals that the GTA continued to lead in sales over $1 million in the first half of 2015, with a very significant 56% increase from January 1st to June 30th, 2015, compared to the same period in 2014.
Sales in Vancouver’s $1 million-plus market have improved by 48% compared to the first half of 2014.
A higher number of properties in Toronto and Vancouver sold above list price, thanks to tightening inventory combined with a higher demand in both markets.
Calgary’s $1 million-plus sales have decreased 36% compared to the first half of 2014. This is a result of falling oil prices and the uncertainty in the market.
Mortgage rates are at record lows and buyers are trying to enter GTA and Vancouver markets urgently, as less and less properties are available in prime neighbourhoods. This will have a great impact on the sales of top-tier real estate in Vancouver and Toronto – they’re expected to gain momentum in the second half of 2015. We can also expect a continued interest of foreign investors, due to the weaker Canadian dollar.
YOU CAN FIND THE WHOLE REPORT HERE.