The performance of Canada’s major metropolitan real estate market remained an unprecedented economic anomaly from March 2020 through to the first quarter of 2022. Fuelled by pandemic-driven lifestyle needs, historically low interest rates and endemic shortages in housing supply, sales activity and prices across the country’s conventional and luxury market soared to historic highs across every major urban market, and across every housing type. Following this unforeseen and anomalous era, the Canadian real estate market normalized through the second quarter of 2022. Our latest market report, Top-Tier Real Estate: 2022 Mid-Year Report, covers the performance of luxury residential real estate sales in Canada’s largest real estate markets during the first half of 2022.
“The Canadian real estate market is winding down a prolonged era of extraordinary sales activity and price escalation that has been an economic anomaly in the history of the country. The frenetic pace of this extraordinary market was bound to rebalance,” says Don Kottick, President and CEO of Sotheby’s International Realty Canada. “In a normalizing market, it is very natural for buyers, sellers, and the market as a whole to undergo a period of hesitancy as all players watch for a new equilibrium, and this is exactly what we are seeing in the real estate market now. This hesitancy is not the same as lack of consumer demand or confidence in the housing market. In reality, there is an abundance of pent-up demand and a real need for conventional and luxury housing across every major Canadian market. Further, local and international confidence in the fundamentals of the Canadian housing market are strong. We have every expectation that as the market comes into balance, potential buyers and investors who have been discouraged by recent years’ market conditions, will re-engage to purchase a property to meet their needs.”
Report Highlights
Calgary led Canada’s major metropolitan markets in percentage sales gains across the $1 million-plus residential market as overall activity rose 40% year-over-year and $1 million-plus single family home, attached home and condominium sales posted annual gains of 36%, 85% and 89% respectively.
Luxury Montréal sales over $4 million remained strong as sales increased 71% year-over-year in the first half of 2022, while $1 million-plus sales were on par with historic highs set in the first half of 2021 with a nominal 1% contraction.
As the market normalized, Greater Toronto Area luxury residential sales over $4 million surpassed the historic highs achieved in the first half of 2021 with a 7% year-over-year increase in sales, while $4 million-plus transactions in the City of Toronto were up 16%. Condominium sales over $1 million in the GTA and City of Toronto saw annual gains of 53% and 26% respectively.
Vancouver saw a sharp shift in luxury consumer sentiment in the second quarter of the year and transitioned from a fevered sellers’ market to one that is more balanced. Overall, $4 million-plus sales fell 18% year-over-year in the first half of 2022, however, condominium sales over $1 million and $4 million were up 20% and 32% year-over-year.
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*Disclaimer: The information contained in this report references market data from MLS boards across Canada. Sotheby's International Realty Canada cautions that MLS market data can be useful in establishing trends over time but does not indicate actual prices in widely divergent neighbourhoods or account for price differentials within local markets. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Sotheby's International Realty Canada or Sotheby's International Realty Affiliates for any loss or damage resulting from any use of, reliance on, or reference to the contents of this document.
Sotheby's International Realty Canada is a licensed real estate brokerage. E&O.E: This information is from sources which is deemed reliable, but must be verified by prospective purchasers and may be subject to change or withdrawal. Not intended to solicit properties already under agreement. Sotheby's International Realty Canada, Brokerage. Independently Owned & Operated.
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