Royal LePage’s latest report on the Canadian luxury real estate market details sales and price appreciation in Toronto, Montreal and Ottawa.
TL;DR: The highest appreciation rates for luxury condos were recorded in Toronto, while Montreal saw the strongest appreciation rates for the luxury property market overall. Meanwhile, luxury property values in Vancouver are decreasing.
The luxury property markets in GTA, GMA and Ottawa all saw healthy price appreciation over the past year, until January 31, 2019.
In the Greater Toronto Area, luxury condominium prices rose by 10.2% year over year to reach $2,268,571. This marked the highest appreciation rate in Canada for the luxury condo segment.
Luxury condominiums in the Greater Montreal Area rose by 8.4% y-o-y to $1,295,401.
“For a second year in a row, luxury condos in Toronto and Montreal have made significant gains in price appreciation and we expect this trend to continue through 2019, however, at a more modest pace in Toronto,” said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Limited.
Single Family Homes
Greater Vancouver was the only Canadian city to post a decline in luxury home appreciation rates. Sales have also decreased since the introduction of foreign ownership taxes and stricter mortgage regulations in 2015. Owners of luxury homes in Vancouver are refusing to sell at a discounted rate, and therefore sales are expected to stay low until appreciation rates improve.
Luxury house sales in the Greater Toronto decreased by 3.6% year-over-year from June 1, 2018 through January 31, 2019. As a result of low sales activity during the 2018 spring market, luxury house sales in Greater Vancouver and the Greater Toronto Area dropped 50.5% and 40.0% respectively, during the twelve month period ending January 31, 2019.
Luxury condominium sales in Greater Vancouver decreased 32.2% during the sale period. Luxury condominium sales in the Greater Toronto Area decreased 3.4%.
“Compared to last year, we are expecting an increase in luxury sales activity in both Greater Vancouver and the Greater Toronto Area,” said Somers. “Price reductions and increased selection in Greater Vancouver are expected to stimulate the luxury property market while an expected return to more normal activity in the Greater Toronto Area will be a marked improvement over last year’s spring market.”
Greater Montreal Area
Luxury condominium sales outpaced luxury detached house sales in the GMA.
The luxury property market showed continued momentum in the Greater Montreal Area, recording increases in both prices and sales.
The median price of a luxury house rose 5.4% to $1,680,942 year-over-year.
The median price of a luxury condominium increased 8.4% year-over-year to $1,295,401.
A strong economy coupled with low inventory is impacting luxury prices and sales in the Montreal Area.
Luxury home sales increased 21.4% during the twelve months ending on January 31, 2019. luxury condominium sales rose 28.9%, outpacing the detached luxury segment.
Over the next twelve months the median price of a luxury house in the Greater Montreal Area is forecast to increase 6.6% to $1,792,037. The median price of a luxury condominium is forecast to increase 7.7% to $1,395,056 at the end of January 2020.
This article, Montreal Luxury Real Estate Report: Q1, 2019, appeared first on Shupilov News.