The luxury home sales in Canada are really showing two very different scenarios. With the top for major cities showing different records, with two of them showing a particular picture and the other two showing quite the other, the experts are trying to understand the discrepancy. The Sotheby’s International Realty Canada which, has been tracking homes priced at $ 1 million and above has shared some findings.
According to the report, the two main key metropolitan areas of Eastern Canada are Toronto and Montreal and they are leading the Canadian top tier real estate performance since the beginning of 2019. The revitalized top tier market also showed some rejuvenation in consumer psychology and that has created quite an impact on recent policy and mortgage lending as well. Some of them have been assimilated and there has been a renewal of confidence in the economic performance of the nation as a whole, according to industry experts. Montreal has steadily emerged as one of the most successful real estate luxury property markets and the economic fundamentals have gradually strengthened over the years. At the beginning of the year, the condominium market of the city exceeded all expectations with the year over year sale percentage skyrocketing and had left every other major city behind.
Some other market trends
In comparison, in spite of some renewed activity in Calgary, which were some regular real estate activity, the market in the city lagged behind in the top tier segment and they remained entrenched in the buyer’s market territory. The sales were slow and the unsold inventory kept on mounting that also burdened the market in Vancouver in the $ 1 million segments. The falling prices also sort of recalibrated the demand across the housing market of the city. However, in the recent months, there was a gradual economic recovery in Calgary and the house prices had eased and had reengaged the home buyers in the under $ 500,000 in the first half of the year. The sale of real estate priced in the $ 1 million categories that included condominiums, attached homes and single-family homes also fell by 21% in the first 6 months of the previous year’s sales.
It was also noted that as far as home types are concerned, the single-family homes priced at $ 1 million fell about 20% in the first six months of the year alone. Seven properties were sold over asking price and they are reflecting the market realities that are requiring the seller to tag a property appropriately to complete a sale. A single-family home that sold more than$ 4 million up from zero in the first half of 2018. 26 homes sold at a price above $ 1 million in the first half of the year in the attached home segment and there was 10% year over year decline before that.
It can be said that the luxury condominium market in Calgary mostly remained quiet in the first six months of 2019 and the sales had gone down more than 65% with only 6 condos sold in the $ 1 million categories. There are, however, signs, that the top tier real estate consumers are now gearing up all over again to engage the buyers in the second half of 2019. With the housing market in Calgary slowly coming into alignment, sellers are also readjusting their prices. Moreover, the provincial elections just got over and there is a fresh start to the economic scenario and people are looking forward to some changes. It is expected that all of these will contribute to the strengthening of the market in Calgary all over again.