The Greater Toronto Area (GTA), ON, will lead the $1 million-plus residential real estate market into spring, with continued sales gains and further price escalation, says Sotheby’s International Realty Canada. Notable growth is also expected for the Vancouver, BC, top-tier residential real estate market, with strong increases anticipated in the $4 million-plus luxury market segment both in Vancouver and the GTA. Key market and macro-economic indicators foreshadow continued stability in the Montreal, QC, luxury real estate market, while price declines are expected to sustain a buyers’ market in Calgary, ON, into the spring. Sotheby’s says the performance of major Canadian real estate markets diverged in 2015. While sales of real estate over $1 million (condominiums, attached homes, and detached single family homes) increased 48 per cent, 46 per cent, and 15 per cent year-over-year in the GTA, Vancouver, and Montreal respectively, sales volume decreased 41 per cent in Calgary. During this time, luxury real estate sales over $4 million soared in Canada’s two largest real estate markets, with sales volume increasing 67 per cent in Vancouver and 71 per cent in the GTA year-over-year. The firm says limited inventory, resilient consumer confidence, strong domestic and supplemental international demand, below national average unemployment, and low interest rates are expected to propel positive growth in the GTA and Vancouver. Stability in the Montreal market will lead to consistent sales, while continued economic uncertainty in Calgary will increase available inventory and contribute to declining home prices across the conventional and top-tier markets.
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