Canadian luxury real estate markets show strong and stable growth
Engel & Völkers reports Canada’s foreign buyer ban is affecting high-profile athletes and executives
TORONTO, ON. July 17, 2023 – Engel & Völkers released its 2023 Mid-Year Canadian Luxury Real Estate Market Report today. Amidst economic uncertainty, fluctuating interest rates and forecasts of recession, Canada’s most sought after premium markets are not faltering. Across the country, the story is one of market stability and sustained demand for a shrinking pool of property. The report features key findings based on data for homes priced over $1 million in Canada’s most in-demand metropolitan real estate markets — Halifax, Montréal, Ottawa, Toronto and Vancouver.
The foreign buyer ban is affecting high-profile athletes and executives, who are essentially being forced to rent. In the long run, this could negatively affect high-stakes talent acquisition in Canada. Boomers who were expected to downsize are staying put due to a lack of appropriate rental and buying opportunities. Homes are now being viewed as generational assets, new for Canada. Shovel-ready land and labour shortages are being seen in key Canadian cities and this will continue to affect real estate supply for years to come.
“Premium markets are proving their resiliency to market fluctuations, showing steady growth and stability. This is in part due to sellers holding off on listing properties while real estate markets return to typical seasonal patterns,” says Anthony Hitt, president and CEO, Engel & Völkers Americas. “Quality inventory on the market has sold quickly, with homes commanding multiple offers, despite the current climate. Interest rate changes have had negilgable effects on premium markets because buyers tend to pay a large portion of home equity up front. The availability of luxury real estate in Canada continues to shrink and Engel & Völkers will be watching this imbalance.”
Halifax’s luxury market has significantly grown since last year. As of June 2023, single-family homes over $1 million comprise close to 10 per cent of the market, compared to 4.6 per cent for all of 2022.
Montréal’s Westmount and Outremont neighbourhoods see home values grow by nearly $1 million over a 10 year period.
Ottawa’s premium market prices ticked up by three per cent for homes valued between $1 – 3.99 million from January to June.
Toronto’s average sold price in June for residential class homes priced between $1 – 3.99 million grew by 3.7 per cent compared to January.
Vancouver seller’s ‘sit and wait’ attitude sees average home prices in the $1 – 3.99 million segment dip by only 5.59 per cent from February 2022’s high-point, signaling a resilient market.
About Engel & Völkers
Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany, in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process for today’s savvy homeowner. Engel & Völkers currently operates approximately 275 shop locations with over 6,200 real estate advisors in the Americas, contributing to the brand’s global network of over 16,400 real estate professionals in more than 31 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.