Photo: Hubert Figuière/Flickr
For years, Vancouver and Toronto have dominated conversations about luxury real estate in the Canadian housing market. But according to a new report, there’s a new city that everyone will be talking about this spring.
“Montreal has been Canada’s ‘dark horse’ in luxury real estate,” writes Sotheby’s president and CEO Brad Henderson, in the company’s 2018 Spring Market Forecast. “For many years, political uncertainty and a stagnant economy tethered performance, but those factors have now dissipated. This spring, we expect strong gains that will set new records for the city.”
The report notes that strong economic fundamentals and rising consumer confidence should push luxury home prices in the city higher than ever before.
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“Following 2017, which saw residential real estate sales over $1 million rise 20 per cent year-over-year to 734 units sold, Montreal’s luxury real estate market is poised to lead Canada’s major metropolitan centres in spring 2018,” reads the report.
Sales were also up 20 per cent year-over-year in January and February, with 104 luxury units sold.
The numbers reflect the Montreal’s strong performance over the past year. According to the Greater Montreal Real Estate Board, 2017 had the second highest number of transactions ever recorded in the city.
Meanwhile another unlikely city is predicted to see a boom in its luxury real estate market this year — Calgary.
“New data compiled by Sotheby’s…for the preliminary months of 2018 also suggest continued recovery in top-tier real estate in Calgary,” reads the report. “January and February sales over $1 million rose 45 per cent year-over-year.”
Still, as Alberta’s economy continues to recover from its recent downturn, there will be plenty of supply to meet buyer demand in the coming months.
“An active buyers’ market is projected for Calgary’s top-tier spring market, offering buyers ample opportunities to negotiate purchases as the city continues along its road of recovery,” reads the report.
As for Toronto and Vancouver’s luxury markets, Henderson predicts that things will stay relative static in the next few months.
“Rising prices and the lack of affordable options is continuing to pressure the Toronto and Vancouver markets,” he writes. “Consumers are deadlocked in their ability to buy and move — their diminishing willingness to transact is slowing activity.”