The luxury real estate market in Canada started strong in 2025 but faced challenges due to macroeconomic and geopolitical issues.
The Re/Max Canada Spotlight on Luxury Report analyzed luxury real estate trends in 12 major markets in January and February, showing growth compared to the previous year. However, uncertainty arose later in the winter season due to factors like tariffs, stock market fluctuations, and political tensions.
Kingsley Ma, area vice president at Re/Max Canada, stated that the initial enthusiasm from homebuyers was dampened by changing circumstances, particularly political tensions between Canada and the U.S.
Mid-sized markets lead the way
Smaller urban centers saw significant sales increases in the first two months of the year, with Saskatoon, Montreal, Edmonton, and Ottawa leading the way. In contrast, high-price markets like Hamilton, Greater Vancouver, and the GTA saw a decline in sales.
Buyers in volatile regions are being cautious, especially at the high end of the market. The report noted that stock market fluctuations and the upcoming federal election are contributing to the slowdown in luxury markets.
High-end homes show resilience
Despite the overall market challenges, the ultra-luxury market in the GTA remained active, with several high-priced homes sold early in the year. Luxury condominium sales also showed strength in Toronto and Vancouver.
Federal housing policies have supported the market, particularly in Western regions. Changes to mortgage insurance rules have allowed more buyers to enter the market with smaller down payments.
Demographic shifts bolstering demand
In-migration and immigration are playing a significant role in supporting luxury market demand in various cities. Multi-generational homes and downsized luxury properties are in demand as demographics shift.
Long-term outlook remains positive
Despite current challenges, the long-term outlook for the luxury real estate market in Canada remains positive. Factors like the growing number of high-net-worth individuals and intergenerational wealth transfer will continue to support demand in the luxury segment.
Canada’s household wealth has been steadily increasing, with a projected rise in the number of millionaires. Kingsley Ma expressed confidence in the resilience of the Canadian luxury real estate market, likening it to the ocean with waves following receding levels.
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