Canadian markets saw significant increases in sales activity across all luxury price brackets last year
Demand for Canadian luxury properties markedly intensified in 2021 with both domestic and non-resident activity reaching unprecedented levels, according to RE/MAX Canada.
The broker network’s latest market analysis found that 18 of the 19 markets registered at least double-digit increases in sales activity over the past year. The greatest growth in sales of residential properties valued at more than $1 million was seen in smaller urban markets such as Barrie (517.8%), London (255.1%), Kitchener-Waterloo (208%), and Hamilton (199.5%), RE/MAX said.
Significant increases in transactions over the $3 million price point were also recorded in the Greater Toronto Area (112.8%) and Metro Vancouver (75.8%). Sales of homes valued at more than $10 million had even greater rates of growth in the GTA (156%) and Metro Vancouver (167%) areas, RE/MAX said.
“The currency of home ownership has clearly taken on a new dimension in 2021,” said Christopher Alexander, president of RE/MAX Canada. “The pandemic fuelled a run on real estate that has encompassed every segment of the market, and the value of housing has increased exponentially as a result – not only as a form of shelter but a desirable asset class that provides an attractive return on investment.”
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Non-resident buyers have become more influential in Metro Vancouver and the Halifax-Dartmouth area in 2021, but domestic buyers continue to drive luxury sales in the GTA, RE/MAX said.
“As high as these numbers are, we believe they just scratch the surface,” Alexander said. “In our view, these levels likely do not truly reflect what is happening in markets across the country, given an abundance of exclusive sales, and in white-hot markets such as Toronto, instances of private sales where buyers approach sellers whose listings have expired.”
A trend that is expected to last well into 2021 is luxury home-buying activity spilling into smaller centres where purchasing power is stronger.
“While the pandemic accelerated the trend, bigger bang for the buck is likely to continue to draw purchasers from larger centres, particularly in Ontario,” RE/MAX said. “Inventory is reaching critical levels in markets like London, Kitchener-Waterloo, Hamilton, Barrie, Kingston and Ottawa.”
