Sotheby’s International Realty Canada released today their bi-annual Top-Tier Real Estate Report which analyses luxury real estate sale of homes valued over $1 million.
In the 2012 market, Sotheby’s found stronger than anticipated growth over 2011 in several Canadian markets. Toronto, Calgary and Montreal saw positive growth in luxury homes, in comparison to 2011 while, due to the Canadian government’s introduction of tighter mortgage rules, Vancouver followed conventional real estate’s softening trend.
The luxury market in Toronto thrived in 2012. This is shown by its increase in luxury homes listed on the market in 2012, reaching a total of 14,170, compared to 2011’s figures which totaled 11,344. Even further, Toronto also saw more luxury homes sold in 2012 coming in at 4,900 in comparison to 2011’s 4,326.
In comparison, Vancouver’s luxury home market wasn’t as lucrative, although in comparison to its 2011, Vancouver still saw an increase in 2012. Luxury homes listed in the Vancouver market rose to 6,216, from 2011’s 6087. Homes sold on the market saw a decrease with 3005 homes sold in 2011, while 2012 only sold 1983.
Fortunately, Sotheby’s expects a strong 2013.
“As we enter 2013, the market for homes over one million dollars is expected to gain momentum and to generate increasing demand from both local and international buyers given strong economic fundamentals, historically low interest rates and a national unemployment rate that has hit a record four-year low. Confidence in the high-end home market is reflected in the expansion of Sotheby’s International Realty Canada into several new markets in 2013, including Quebec City and Edmonton,” said Sotheby’s in the Top-Tier Real Estate Report.