Renewed confidence in Canada’s post-pandemic return and economic recovery bolstered gains across the country’s major metropolitan luxury real estate markets through the first half of 2021. As the Bank of Canada reported first-quarter GDP growth at a “robust” 5.6%, the Conference Board of Canada projected a 6.1% expansion of real GDP in 2021, with solid economic recovery expected across every province. Resulting confidence, housing demand and eroding luxury real estate inventory were captured in new data compiled by Sotheby’s International Realty Canada that reflect record-breaking levels of activity and prices across the country’s major luxury markets through the first half of the year.
Activity in the Greater Toronto Area (Durham, Halton, Peel, Toronto and York) luxury residential real estate market eclipsed the superlative performance of other Canadian markets in the first half of 2021, as sales over $4 million (condominiums, attached and single family homes) soared 276% year-over-year. Of these,15 ultra-luxury properties sold over $10 million, an increase of 114%, from the first half of 2020. Significant gains were experienced across all luxury housing types, with sales over $4 million for condominiums, attached and single family homes up 88%, 400% and 290% year-over-year, respectively. Overall, $1 million-plus residential sales surged 217% year-over-year in a market that heavily favoured sellers and fatigued buyers.
The tempo of Vancouver’s luxury market also accelerated to a frenetic pace in the first half of 2021, as residential sales over $4 million and $10 million surged 152% and 300% year-over-year, respectively. As in the case of Toronto and Montreal, the performance of the city’s luxury condominium market overcame its initial pandemic stall, with $4 million-plus sales regaining momentum over the spring to achieve a 138% year-over-year gain by the first half of 2021. Meanwhile, $4 million-plus single family home and attached home sales climbed 152% and 300%, respectively. By mid-year, residential real estate sales over $1 million were up 107% from 2020 levels.
Montreal’s $4 million-plus residential real estate sales rose 133% year-over-year in the first half of 2021, recapturing its pre-pandemic momentum that had seen the city’s luxury market achieve multiyear annual sales gains and solidify its position as a global luxury real estate destination. Single family home sales over $4 million increased 160% year-over-year, while the sale of a condominium listed at $12.9 million by Sotheby’s International Realty Quebec broke the province’s historic record for condominium prices on MLS. Overall, real estate sales over $1 million rose 112% from the first half of 2021, setting a new benchmark for activity and prices for the city’s luxury segment.
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