Canada's luxury real estate market is seeing stabilization, making it a favorable time for buyers, according to a new report by Sotheby’s International Realty. Major markets, including Toronto and Vancouver, have seen price moderation as demand growth slows and mortgage rates level off. Toronto’s high-end market remains steady, while Vancouver’s has cooled slightly amid economic uncertainties.
Meanwhile, Montreal’s luxury home market has shown resilience, with sales increasing in recent months. Calgary also experienced a boost, thanks to a rising population and higher demand for properties over $1 million. The report highlights that current conditions offer a rare advantage for luxury home buyers, particularly in Toronto and Vancouver, where prices have plateaued.
Sotheby’s CEO, Don Kottick, explains that stabilizing prices are making luxury homes more accessible for buyers. However, he warns that this opportunity may be temporary due to potential future price increases driven by population growth and construction costs. He adds that the demand for luxury homes is likely to stay strong, especially in Canada’s metropolitan areas.
The trend toward stabilization follows a period of rapid price increases, which had made luxury homes less attainable for many. Now, with the market calming, buyers can enter with fewer bidding wars and more negotiating power. In particular, the current environment is appealing to Canadian and international buyers seeking stable investments.
With Canadian luxury homes becoming more affordable and supply growing in key cities, market dynamics have shifted in favor of buyers. This period of balance may be a short window, though, as experts suggest continued demand and limited supply could lead to rising prices down the road.
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