Pandemic pushed luxury home sales to new highs
January 27, 2022
$10 million, 4,600-sq-ft condo listed January 2021 in Vancouver’s Wall Centre.
| faithwilson | Christie’s International Real Estate
Demand for Canadian luxury properties shifted into high gear from coast to coast in 2021 as both domestic and non-resident consumption of residential real estate reached new levels, according to a new report from Re/Max Canada.
“The currency of home ownership has clearly taken on a new dimension in 2021,” says Re/Max Canada president Christopher Alexander. “Canadians are moving to secure their future. The pandemic fuelled a run-on real estate that has encompassed every segment of the market, and the value of housing has increased exponentially as a result.”
The RE/Max Canada 2022 Luxury Market Report examined trends and developments in sales of freehold and condominium properties priced over $3 million in Metro Vancouver and the Greater Toronto Area (GTA), and tracked sales over $1 million in 17 additional Canadian housing markets.
According to an analysis of sales provided by Re/Max brokers based on local real estate board data, the survey found that 18 of the 19 markets analyzed recorded percentage increases in the double- and triple-digits. The greatest appreciation occurred in smaller urban markets such as Barrie, London, Kitchener-Waterloo and Hamilton, where sales of homes priced over $1 million have climbed 517.8 per cent, 255.1 per cent, 208 per cent and 199.5 per cent respectively. Canada’s largest markets for luxury product—GTA and Metro Vancouver—experienced increases of 112.8 per cent and 75.8 per cent respectively for homes over the $3-million price point, while transactions of homes priced over $10 million rose a substantial 156 per cent and 167 per cent respectively.
2021 marked the continuation of a pandemic-fuelled buying spree that started in 2020, shattering existing records for luxury home sales and, in some instances, price points from coast to coast.
“Despite a third and fourth wave of COVID-19 in 2021, real estate markets continued to rattle and hum,” said Re/Max Canada executive vice-president Elton Ash. “Tight inventory levels were prevalent in at least half of the markets we surveyed and contributed to an uptick in values.”
