2

High-end homes sales up in Toronto, Vancouver, down in Calgary

Sotheby’s report says sales of homes worth $1M or more in the Greater Toronto Area rose 48 per cent in 2015


 
An aerial view of housing is shown in Calgary on June 22, 2013. The Canadian Real Estate Association expects average house prices in Alberta, Saskatchewan and Newfoundland and Labrador to fall next year because of the downturn in the oil industry.The association is estimating Alberta's average housing price will fall in 2016 by 2.5 per cent. THE CANADIAN PRESS/Jonathan Hayward

An aerial view of housing is shown in Calgary on June 22, 2013. The Canadian Real Estate Association expects average house prices in Alberta, Saskatchewan and Newfoundland and Labrador to fall next year because of the downturn in the oil industry.The association is estimating Alberta’s average housing price will fall in 2016 by 2.5 per cent. THE CANADIAN PRESS/Jonathan Hayward

TORONTO — A new report says sales of homes worth $1 million or more heated up in Toronto and Vancouver last year as the low loonie fuelled demand from foreign buyers.

The report from Sotheby’s International Realty Canada says sales of homes worth $1 million or more in the Greater Toronto Area rose 48 per cent in 2015 from the previous year.

In Vancouver, there were 46 per cent more homes over the $1 million sold last year compared with 2014.

The realtor says sales of homes worth more than $4 million grew the most — in Vancouver by 67 per cent, and in Toronto by 71 per cent.

But after years of growth, Calgary’s high-end housing market declined last year as the downturn in the oilpatch hurt consumer confidence.

The Sotheby’s report says sales of homes over $1 million fell 41 per cent in Alberta’s largest city in 2015 compared with the previous year.

Elaine Hung, vice-president of marketing for Sotheby’s International Realty Canada, said low interest rates, high levels of immigration and a limited supply of homes heated up the high-end housing markets in Toronto and Vancouver.

“We had a lot of buyers who were very eager to enter the market, and they were bidding on a limited number of homes, particularly in premier neighbourhoods,” said Hung.

In many instances, that resulted in bidding wars, according to the realtor.

The luxury segment — comprised of homes worth $4 million or more — benefited from all of those factors, as well as weakness in the value of the Canadian dollar.

“We did see increased interest from international buyers, so that was definitely a factor,” said Hung, referring to the $4-million-plus segment in Toronto and Vancouver.

In Montreal, sales of homes worth over $1 million grew by 15 per cent from a year ago.

Looking ahead to 2016, Hung predicts more of the same — continued sales growth in Toronto and Vancouver, a further slowdown in Calgary and a balanced market in Montreal.


 
Filed under:

High-end homes sales up in Toronto, Vancouver, down in Calgary

  1. If indeed “foreign buyers” are driving up the cost of residential real estate, then the appropriate level of government should act to curtail this. Other countries restrict foreign ownership and there is no reason that we can’t either. It’s just not right if residents of Canada are being priced out of home ownership by foreign buyers.

  2. Nobody is doing or seem to care doing anything about the
    skyrocketing house prices in these areas from which only the non very-wealthy
    people looking for houses are suffering . In fact, some BC politicians seem to be very happy to see the prices of the properties in Lower Mainland and Metro Vancouver areas.
    are skyrocketing . Vancouver Mayor sent a letter to the
    BC premier Christy Clark few months ago requesting her to do something about
    that situation but apparently she did nothing. The increase of house prices also
    has resulted in higher rent, which makes it difficult for lower and medium
    income-people to afford even renting anything (e.g a basement in a house or
    even townhouse or apartment). The long term impact of this trend on the fabric
    of the society is these areas is going to be dramatic, if the government keeps
    ignoring this. The history will record that the respective politicians did not
    do anything to fix the problem.-people to afford even renting anything (e.g a basement in a
    house or even townhouse or apartment). The long term impact of this trend on
    the fabric of Canadian society is going to be dramatic, if the government keeps
    ignoring this.

Sign in to comment.