GTA To Lead Luxury Homes Markets


    Canada’s market for residential real estate over $1 million will be led by the Greater Toronto Area (GTA), ON, in the spring of 2017, with sales volume, velocity, and pricing of the $4 million luxury segment projected to surpass previous years’ record-breaking performance, says Sotheby’s International Realty Canada. The GTA experienced the greatest year-over-year gains in sales over $1 million (condominiums, attached, and single family homes). In January and February 2017, sales volume increased 87 per cent across the region, while sales in the city of Toronto rose 44 per cent. During this time, sales of luxury real estate over $4 million soared 144 per cent and 147 per cent in the GTA and the city of Toronto respectively. Montreal, QC’s market for real estate over $1 million is expected to continue its course of modest, healthy growth. In Montreal, $1 million-plus real estate sales increased 13 per cent in the first two months of 2017 compared to the year prior, while Calgary, AB’s remained on par with 2017 levels. Vancouver, BC, sales over $1 million fell from historic highs by 45 per cent year-over-year during this time, as sales over $4 million contracted 68 per cent. This market is anticipated to normalize in the coming months. Sotheby’s says Canada’s top-tier real estate market continues to face unprecedented levels of uncertainty in spring 2017, absorbing the impact of previously introduced government policy, responding to shifting signals on potential new regulation, and moving with forceful geo-political headwinds on a continental and global scale. In spite of these macro-influencers, local market factors such as inventory levels, regional economic and job indicators, consumer confidence, and hyper-local demand will continue to be the predominant forces influencing top-tier market performance in spring 2017.