According to a new report by Sotheby’s International Realty, Montreal is emerging as a luxury real estate “hot spot,” while Toronto and Vancouver are experiencing a sluggish period expected to pick up after the fall.
The optimism in Canada’s real estate comes despite a slew of changes in federal policy intended to cool down overheated housing markets. Toronto, for example, experienced a recent drop of sales of more than $1 million, in response to new stress test legislation and interest rates increases. Transactions of luxury homes over $4 million fell by 28% in Toronto this summer. In Vancouver, luxury sales over $1 M dropped by 23% in the first half of 2017.
Meanwhile in Montreal, sales of condominiums and homes over $1 million have jumped by 60% between July and August.
Industry forecasts predict Montreal will emerge as leader in the Canadian luxury real estate landscape, in the following months. Montreal’s affordability and high quality of life accounts for its uptick in momentum in this arena.