Despite concern for the high-end of the market by some analysts, sales of luxury homes hit record levels in a majority of Canadian cities during 2013.
Renewed consumer confidence, favourable economic conditions and an increasing pool of domestic millionaires have been cited as the primary reasons for last year’s surge in luxury home sales.
Around 75% of Canadian markets experienced year-on-year percentage increases in sales during 2013, with record figures in Winnipeg, Saskatoon and St John’s.
“Demand and sales are unprecedented, but what’s also striking is the increasing level of luxury that homebuyers are demanding and that homeowners are instilling in existing product. From high-end homes to condominiums, the market is evolving. It’s not only raising the bar, but price tags in the process,” says Sylvain Dansereau, Executive Vice President from RE/MAX Quebec.
RE/MAX also attributes the rise in the Greater Toronto (up by 18%) and Greater Vancouver (up by 36%) to the diminishing stock of single-family homes in the urban markets. Vancouver’s rise follows a huge slump in the market in 2012 with the region continuing to attract a high rate of international buyers.
While smaller markets like Hamilton/Burlington enjoyed record sales by 31%, ‘luxury’ homes there are priced at $750,000, while in Calgary it is priced at $1million.
“With the economic picture set to improve in major centres from coast to coast in 2014, including Quebec, confidence is building,” says Dansereau. “As a result, buying intentions at the upper end should remain solid, providing another positive indicator for the overall health of Canada’s real estate market.”
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