- Canada’s luxury market saw muted sales in the first quarter of 2023 as a shortage of conventional and top-tier inventory compelled real estate sellers and buyers to defer activity into the second quarter in anticipation of more property listings.
- Demand for luxury and conventional housing continues to intensify as previously sidelined sellers and buyers signal their need and readiness to transact in the season ahead.
- Real estate market confidence remains strong. 49% of urban Canadians between the ages of 18–77 years recently surveyed by Mustel Group and Sotheby’s International Realty Canada across Canada’s four largest metropolitan areas expect that a home or residential real estate purchase will perform the same or better than their other financial investments in 2023, and a resounding 60% believe that real estate will outperform or match their financial investments in the next decade.
- Record in-migration and a dynamic economy bolstered Calgary’s luxury market performance in the first quarter of 2023. Although $1 million-plus residential sales were down 36% from January 1– March 31 year-over-year, this sales volume was a significant 223% higher than levels recorded in the pre-pandemic first quarter of 2020 and more than the city’s 10-year average for sales over $1 million.
- Montreal’s luxury market continued to rebalance, as residential sales over $1 million pulled back by 43% year-over-year in the first quarter of 2023.
- A scarcity of luxury listings in the City of Toronto limited potential transactions and contributed to a 64% year-over-year decline in Greater Toronto Area residential sales over $4 million in the first quarter of the year.
- In Vancouver’s inventory-starved market, first-quarter luxury sales activity over $4 million receded 53% year-over-year as prospective home buyers and sellers strategically deferred activity to spring.
Real eState
High-Pressure Spring: Competition Intensifies in Canada’s Luxury Real Estate Market as Buyer Demand Surges
According to Sotheby’s International Realty Canada’s Top-Tier Real Estate: Spring 2023 State of Luxury Report, a shortage of luxury housing supply in the City of Toronto deflated the aspirations of potential home purchasers, and depressed total luxury sales volume across the Greater Toronto Area in the first quarter of 2023. As a result, GTA luxury residential real estate sales over $4 million (condominiums, attached and single family homes) between January 1 – March 31 were down 64% year-over-year from the first quarter of 2022. During this time, one property sold over $10 million on MLS, compared to eight ultra-luxury residences sold above this price point in the same period last year. Overall, $1 million-plus residential sales were down 57% year-over-year in the GTA, foreshadowing a competitive market for appropriately priced and well-appointed luxury properties this spring.
Sales activity in the City of Vancouver’s luxury real estate market remained calm in the first quarter of 2023, a trend widely anticipated by both the real estate industry and consumers. This was due largely to the traditional seasonality of the real estate market, which typically sees diminished activity between December and March, as well as the “wait for spring” strategy employed by prospective home sellers, buyers and investors as they adjusted their approach to meet elevated interest rates and limited listings supply.
Alberta is projected to see steady economic growth over the next two years, according to the Conference Board of Canada, which anticipates a third consecutive year of growth for the province in 2023, primarily driven by the energy sector and high commodity prices. With the province’s GDP gains forecast at 2.1% in 2023 before accelerating to 2.8% in 2024, the City of Calgary’s steady economic revival and record-setting in-migration trends have renewed activity across the residential real estate market. Consumer confidence in the city’s overall real estate market is also healthy. According to recent survey results released by Mustel Group and Sotheby’s International Realty Canada, 52% of Calgary residents 18–77 years old believe that a home or residential real estate purchase will outperform or be on par with the performance of their financial investments in the next year, while 55% believe that real estate will outperform or match financial investment performance in the next decade.
As a result, the city’s luxury housing market was active and healthy in the first quarter of 2023, gaining steady traction as buyer and investor demand absorbed the limited listings inventory that came to market. According to Sotheby’s International Realty Canada experts, although the market in the first quarter of the year skewed in favour of sellers, prospective home buyers engaged with discernment, confidence and the expectation that housing prices align with current market realities. The Calgary market is increasingly challenged, however, by a shortage of residential inventory overall, due in part to prospective sellers’ reluctance to list their properties due to concerns about finding a suitable next home. With the Calgary Real Estate Board (CREB) reporting a nearly 26.4% year-over-year decrease in overall inventory in March 2023, the lowest inventory levels for March since 2006, and with new listings down 39.6%, the conventional and luxury real estate market risks tilting further in favour of sellers into the spring months.
As buyers and sellers adjusted to new market realities and sales velocity slowed, top-tier residential real estate sales over $1 million (condominiums, attached and single family homes) in the City of Montreal fell 43% year-over-year, with 247 properties sold in the first quarter of 2023. Luxury sales over $4 million posted a moderate year-over-year decline of 33%, with eight total homes sold. Remaining consistent with the first quarter of 2022, no ultra-luxury property sales were reported over $10 million on Multiple Listing Services (MLS) between January 1– March 31, 2023.
For more information on Sotheby’s International Realty Canada and the Top-Tier Real Estate: Spring 2023 State of Luxury Report, contact:
Talk Shop Media
Amber Coyle
Amber@TalkShopMedia.com
250-215-3169
About Sotheby’s International Realty Canada
Combining the world’s most prestigious real estate brand with local market knowledge and specialized marketing expertise, Sotheby’s International Realty Canada is the leading real estate sales and marketing company for the country’s most exceptional properties. With offices in over 35 residential and resort markets nationwide, our professional associates provide the highest caliber of real estate service, unrivalled local and international marketing solutions and a global affiliate sales network of approximately 1,000 offices in 81+ countries and territories to manage the real estate portfolios of discerning clients from around the world. For further information, visit www.sothebysrealty.ca.
Disclaimer
The information contained in this report references survey results, plus market data from MLS boards across Canada. Sotheby’s International Realty Canada cautions that MLS market data can be useful in establishing trends over time but does not indicate actual prices in widely divergent neighborhoods or account for price differentials within local markets. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Sotheby’s International Realty Canada, Sotheby’s International Realty Affiliates or Mustel Group for any loss or damage resulting from any use of, reliance on, or reference to the contents of this document.
Survey Methodology
Mustel Group and Sotheby’s International Realty Canada, “2023 Canadian Real Estate Market Sentiment: Generational Trends Report” is based on results from a survey employing an online methodology, using a robust national panel of Canadians between the ages of 18–77 who reside in the Vancouver, Calgary, Toronto and Montreal Census Metropolitan Areas (CMAs). The panel is maintained to be representative of the Canadian population and provide high-quality data. Panelists are recruited by a double opt-in method from large databases of reputable channels using industry standards of panel quality assurance, validation, verification and best practices for panel management. A total of 2,000 Canadian adults were surveyed, using a disproportionate sampling method to enable analysis between generational cohorts and within each metropolitan area, as well as across the combined metros (Census Metropolitan Areas, CMAs). The sample was weighted to match Canada census based on age and gender within each CMA and to bring the total sample into proper proportion based on relative populations. While the panel sample is demographically representative, margins of error only apply to random probability samples. (The margin of error on a random probability sample of 2,000 respondents is ± 2.2 percentage points, 19 times out of 20, and ranges from ± 3.8 to 4.9 points for 400 – 680 respondents). Data for this report series was gathered from Jan 3 to Jan 10, 2023.
Real eState
Two Quebec real estate brokers suspended for using fake bids to drive up prices
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
The Canadian Press. All rights reserved.
Real eState
Montreal home sales, prices rise in August: real estate board
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
The Canadian Press. All rights reserved.
Real eState
Canada’s Best Cities for Renters in 2024: A Comprehensive Analysis
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Fredericton, NB
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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