Canada’s luxury home market on clear, upward trajectory in 2013

Published 28 January 14 12:44 PM | Merv Edinger 
 

The Upper-end luxury real estate market in Canada in 2013






Canada’s luxury home market on clear, upward trajectory, marked by record sales in most major centres in 2013, says RE/MAX



Accelerated demand pushing five-year growth rates into double and triple-digit territory



Mississauga, ON (January 28, 2014) -- Significant gains at the top end of the country’s housing market continued to demonstrate the overall strength of Canadian real estate in 2013, according to a report released today by RE/MAX.


 


The RE/MAX Upper End Report, highlighting trends and developments in 16 major Canadian centres, revealed that:


_ Seventy-five per cent of markets experienced year-over-year percentage increases in sales—including eight markets that posted double-digit gains. Greater Vancouver led the charge with a 36 per cent increase in luxury sales last year, followed by Calgary at 34 per cent, Edmonton at 32 per cent, Hamilton-Burlington at 31 per cent, Kitchener-Waterloo at 27 per cent, Winnipeg at 26 per cent, Greater Toronto at 18 per cent, and Saskatoon at 15 per cent.


_ Over two-thirds of markets set new records for high-end sales in 2013. Markets included St. John’s,


Quebec City, Greater Toronto, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Winnipeg,


Regina, Saskatoon, Edmonton, and Calgary.


_ Luxury sales have close to quadrupled since 2009 in Regina (up 288 per cent), tripled in St. John’s (219 percent), and more than doubled in Winnipeg (189 per cent), Hamilton-Burlington (173 per cent), Saskatoon (157 per cent), the Greater Toronto Area (147 per cent), Greater Vancouver (125 per cent), and Calgary (115 per cent). London-St. Thomas was up 90 per cent, Ottawa increased 86 per cent, Edmonton rose 81per cent, while Quebec City jumped 76 per cent and Montreal climbed 61 per cent in the five-year period.


 


“Canada’s luxury housing market has undergone serious transformation in recent years, setting a new standard for lifestyles of the rich and famous,” says Gurinder Sandhu, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “High-end homes are commanding top dollar in blue chip neighbourhoods from coast to coast. Condominiums are hitting price points that rival single-detached homes. The market is maturing and the appetite is unprecedented.”


 


Last year’s relatively low interest rate environment, substantial equity gains in Canadian real estate markets, stellar performance in US equities, and improving economic conditions contributed to the upswing in luxury home sales, driving close to 70 per cent of Canadian markets to new heights in 2013.


Diminished supply of single-family homes—particularly in markets like the Greater Toronto Area and Greater Vancouver—contributed to steady homebuying activity, as pent-up demand persisted. Yet, most purchasers remained grounded, especially at higher price points, and the climate proved fundamentally healthy.


 


 


 MARKET         ____  Price Point                   Sales '09        Sales '10         Sales '11        Sales '12       Sales '13 %      +/-


St. John's                     $500,000                           54                  86                   115                 161                  172              7%


Halifax-Dartmouth     $500,000                         181                205                   291                 299                  268          -10%


Quebec City                 $500,000                         116                150                   150                 196                  204             4%


Greater Montréal       $1 million                        251                330                  406                 436                  405            -7%


Ottawa                         $750,000                          210                244                  360                 392                  390            -1%


Greater Toronto         $1.5 million                     774              1069                 1391              1617                 1908           18%


Winnipeg                     $500,000                          152                290                   359                349                   439           26%


Regina                          $500,000                           80                 127                  198                 303                   310             2%


Saskatoon                     $500,000                         197                 232                  332                440                    507           15%


Edmonton                    $750,000                          202                248                   220                277                   365            32%


Calgary                        $1 million                        340                367                   447                548                   732            34%


Greater Vancouver    $2 million                        715              1008                  1880              1184                 1609            36%




Victoria                       $1 million                        219                240                    229                227                    200          -12%
*Source: RE/MAX, Local Real Estate Boards

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