Luxury real estate in Canada’s major markets remains stable, experiencing fewer price fluctuations compared to the general housing market.
According to the 2024 Royal LePage Carriage Trade Luxury Market Report released today, luxury home sales have increased in the first eight months of 2024 compared to the same period last year, except in Vancouver, Toronto, and Halifax. Prices have slightly risen in some regions and slightly dropped in others.
‘Buyers in this segment know what they want and they are willing to wait for it’
“Homes at the high end of the market typically change hands at a slower pace than the industry overall, as the pool of potential buyers diminishes as property prices increase. This allows luxury buyers to act more thoughtfully, taking their time to find the perfect home,” explains Phil Soper, president and CEO of Royal LePage.
He notes that while market conditions may vary by location, the dynamics of the luxury real estate market remain consistent nationwide: “Buyers in this segment know what they want and are willing to wait for it.”
Standout regions
Luxury markets in the Prairie provinces, particularly Winnipeg, Edmonton, and Calgary, have seen some of the largest sales increases, reflecting strong demand.
Quebec City has also experienced significant growth in luxury sales.
Luxury market activity driven by consumer confidence
Luxury buyers, who are often less affected by high interest rates and mortgage requirements, are influenced by confidence in the broader economy and macroeconomic factors. In some areas, high construction costs are increasing demand for move-in ready properties, while in others, buyers prefer to build custom homes despite longer timelines.
“Luxury buyers typically have the resources to be selective. Their decision to buy or not is often based on their confidence in the overall economy and the direction of housing prices. Our research indicates that those in the high-end housing market have a positive outlook on the long-term stability and appreciation potential of Canada’s housing stock,” Soper notes.
Foreign buyer ban has minimal impact
The federal government’s two-year ban on foreign buyers, implemented in January 2023, briefly reduced demand in some affluent markets but has not significantly affected luxury property prices or inventory levels.
With the ban extended until 2027, Soper explains, “After two years, the ban on foreign buyers has had almost no impact on housing prices in Canada, as expected. Extending the ban on international buyers will not make housing more accessible to Canadians.”
He emphasizes that the main issue is the continued upward pressure on prices as long as supply fails to meet the demand for homes.
Experts in major Canadian cities anticipate active activity in the fall market.
View the full report, including regional summaries.
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