The luxury real estate market in Canada during the third quarter of 2024 showcased a mix of trends across different major cities. In Toronto, there was a steady level of sales activity, with single-family homes dominating the high-end market. However, luxury condominium sales saw a decline, leading to excess inventory and price drops, creating favorable conditions for buyers. The Greater Toronto Area saw an increase in residential sales over $4 million, with a 3% uptick in July and August and a healthy 9% increase in September compared to the previous year.
On the other hand, Vancouver’s luxury real estate market remained soft in the third quarter, with sales over $4 million declining in July and August. The market was affected by economic and political uncertainty, high housing prices, and concerns about public safety. Calgary, however, continued to perform well, with record inter-provincial migration and immigration boosting sales of $1 million-plus residential properties by 31% in July and August.
Montreal’s luxury real estate market saw gains in the third quarter, with high-end residential sales over $1 million increasing by 25% year-over-year. Single-family homes remained the preferred choice for luxury buyers, with sales over $4 million showing an increase. The luxury attached home market remained stable, while luxury condominium sales saw growth, especially in the $1 million-$2 million range.
Overall, the luxury real estate market in Canada is experiencing a shift towards more favorable conditions for buyers, with increased inventory and declining mortgage rates. The cumulative effect of interest rate cuts by the Bank of Canada has instilled confidence and spurred transactions in the luxury market. While the market is expected to remain stable in the coming months, population growth and rising building costs may intensify competition for housing in the long term.
In conclusion, the luxury real estate market in Canada’s major cities is navigating through a mix of challenges and opportunities in the third quarter of 2024. Buyers and investors are presented with favorable conditions to secure properties at more attractive prices, especially in cities like Toronto and Vancouver. As the market continues to evolve, it will be interesting to see how factors like interest rates, population growth, and economic conditions shape the luxury real estate landscape in the months ahead.