A return to city living and enduring pandemic influences drive price gains and active fall market, as scarce inventory undermines potential sales, according to Sotheby’s International Realty Canada
TORONTO, Oct. 06, 2021 (GLOBE NEWSWIRE) — Canada’s metropolitan luxury real estate markets continue to reflect unprecedented circumstances leading into fall 2021. Following record-shattering sales across major markets through the first half of 2021, pandemic-related influences continue to motivate consumer housing activity, driving new demand for urban real estate as downtown cores revitalize and consumer confidence in higher density, city living continues to rise. However, the supply of available top-tier real estate is deficient in relation to housing needs, constraining sales across multiple market segments, limiting housing mobility, and accelerating price gains as a result. With an unsatiated undercurrent of demand across every major market and a new wave of prospective real estate consumers imminent, rising prices and steady activity is forecast for fall.
New data compiled by Sotheby’s International Realty Canada reveals that the Greater Toronto Area (GTA) is positioned to see continued price acceleration in an active fall market, even as the region’s acute shortage of conventional and luxury housing supply caps overall activity. An unexpectedly active summer resulted in residential real estate sales over $4 million rising 12% year-over-year in July and August 2021, with six ultra-luxury properties sold over $10 million compared to four properties sold in this price range over the same months in 2020. As in other major metropolitan markets, the GTA luxury condominium market strengthened as confidence in urban living continues to rise. As a result, sales of luxury condominiums over $4 million were up 40% year-over-year to seven units sold in the GTA in July and August, with one ultra-luxury unit selling over $10 million on MLS compared to a lack of transactions in this price range in the summer of 2020. This outpaced the percentage gains experienced in luxury single family home sales over $4 million, which saw a 15% year-over-year increase from the summer months of 2020. Residential sales over $4 million between September 1–15 reflect underlying consumer demand for premier real estate leading into fall, as sales increased 33% year-over-year.
Vancouver’s luxury market is poised to see some relief from the extraordinary pace and price gains experienced over its prolonged sellers’ market but continues to confront the challenges of the region’s chronic and significant deficit of conventional and high-end housing supply. Overall residential sales over $4 million increased 13% year-over-year in July and August 2021, with one ultra-luxury property sold on Multiple Listing Service (MLS) over $10 million during this time. Top-tier condominium sales also strengthened as confidence in city living revived; summer sales over $1 million increased 22% year-over-year, while luxury condominium sales over $4 million remained steady at 2020 summer levels with nine units sold. At the same time, luxury single family home sales over $4 million increased 14% year-over-year in July and August, while one home sold over $10 million on MLS compared …….