Luxury Homebuyers Set for "Best Conditions in Years"

If you've been eyeing a luxury home in Toronto or Vancouver, the latest market conditions are some of the most favorable since 2017, according to experts at Sotheby’s International Realty Canada. In their Fall 2024 State of Luxury Report, they highlight a shift in Canada's luxury real estate market, where key cities are seeing more balanced conditions for buyers than in recent years.

In both Vancouver and Toronto, the luxury condo market has become more buyer-friendly, with rising inventory outpacing demand. Even the luxury single-family home market, usually known for its fierce competition, has started to tilt in favor of buyers in these traditionally hot markets. This shift is creating opportunities for those looking to invest in high-end properties in cities that are typically known for their scarcity of listings and high prices.

Vancouver: A Quiet Quarter, But Opportunities for Buyers

Vancouver had a slower third quarter, with luxury sales dipping, largely due to economic and political uncertainties, high living costs, and some concerns about safety in certain neighborhoods. In fact, sales of homes priced over $4 million dropped 13% compared to last year, though ultra-luxury homes (over $10 million) held steady at four sales. September was quieter still, with a sharp 31% decline in $1 million+ sales.

But there’s a silver lining for buyers—especially in the condo market. With more listings available, it’s now a buyer's market, and the summer saw a notable 19% drop in condo sales over $1 million compared to the previous year.

Calgary: Luxury Market Booms

Across the Rockies, Calgary’s luxury real estate market is thriving. The city continues to attract both locals and newcomers, with the population booming due to strong migration—over 89,000 people moved to Alberta in the first half of 2024 alone. This influx, coupled with Calgary's relatively affordable luxury market, has fueled a 46% year-over-year rise in luxury home sales over $1 million in the first half of 2024.

Even as the market heats up, there's still room for growth, with demand continuing for single-family homes, especially those priced over $4 million. While condo sales are slower, the overall luxury market continues to build momentum.

Toronto & the Greater Toronto Area: A Market in Balance

In the Greater Toronto Area (GTA), increasing population levels have helped stabilize the luxury market. Sellers are more willing to price properties realistically, which has made for a more balanced dynamic between buyers and sellers. In Toronto, sales of homes priced over $1 million dropped 7% this summer, but there was a notable increase in $4 million+ homes, which rose 18% year-over-year.

The luxury condo market in Toronto saw a quiet quarter, with fewer sales in the $1 million+ range, though $4 million+ and $10 million+ properties showed some improvement. Single-family homes remain in high demand, with properties in the $4 million+ range seeing the biggest gains.

What’s Next?

Experts predict that the luxury real estate market in Canada will remain stable for the foreseeable future. However, rising building costs, limited construction, and population growth may lead to increased competition down the road. For now, buyers are encouraged to take advantage of the favorable conditions we’re seeing today—especially if you're in the market for a top-tier home.

Whether you’re eyeing a sleek condo in Vancouver, a stately mansion in Toronto, or a stylish single-family home in Calgary, the fall of 2024 offers some of the best conditions for purchasing luxury real estate in years. It’s an exciting time for buyers and investors alike.