Posted 3.29.16 @ 0:0
With last month being the best sales month for Vancouver realtors, aren’t you curious what the statistic will be for March? Foreign investors are rushing in to our cities and purchasing premium Canadian real estate, driving the sales of Canadian luxury real estate further up. Let’s take a look back at how February fared.
Luxury Love for the Love Month?
Home sales set a new record in Vancouver, coming in at an increase of 65.6% in just a month (and February doesn’t even have as many days as other months). To date, the rising demand for existing homes is still not met by what’s available for sale, making Canada’s most expensive homes more attractive to buyers both local and foreign alike. Sotheby’s International Realty Canada shared that homes selling for $4 million and above are experiencing a stronger sales record for the first 2 months of 2016 for both Vancouver and Toronto. The real estate company shared that Toronto recorded a 71% increase and Vancouver is up 67% compared to a similar period last year, a record increase for Canada’s priciest hot housing markets.
Sotheby’s Canada chief executive Brad Henderson shared that the above percentages show that the year is truly starting strong, even better than the impressive figures of 2015. He also shared that with the exception of Calgary, Vancouver, Montreal, and Toronto do show both increasing demand and prices.
While Sotheby does acknowledge that foreign ownership does play a role in heating up the already hot real estate markets in Canadas key cities, they do not consider foreign buyers to be the primary reason for the rising real estate prices. Henderson believes that the dominant or driving forces are actually strong consumer confidence, our strong economy, low interest rates, and limited inventory. He further adds that the largest number of sales are going towards people who are buying homes to use as their primary residence.
Luxury Home Sales
For $4 million, people are actually getting the best homes in the neighbourhoods of Vancouver and Toronto, so it isn’t like the prices are simply rising without real merit. The truly palatial homes, will, of course cost a few millions more but Henderson says that $4 million actually gets someone a beautiful luxury home in neighbourhoods such as Shaughnessy in Vancouver and Forest Hill or Rosedale in Toronto.
In Montreal, $1 million can get someone a beautiful luxury home that will cost a lot more elsewhere. For $4 million, one is bound to find better deals than what is available in Toronto or Vancouver. However, it should be noted that sales there climbed up 80% compared to a similar period last year, so if you’re looking for a home in Montreal, you better head there now.
Vancouver board shares that demand is still much higher than what is available, even with supply actually recording an increase of 7.1% for February compared to a year ago. Add to that the fact that February’s listings increased 30.8% from January this year, then one can indeed see how huge the demand is.
With spring officially starting this month, Canada’s most sought-after real estate market are bound to have more listings but since demand usually picks up even more for the same period, the sustained buyer competition is likely to keep home prices up.
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