Sotheby’s International Realty Canada’s Top-Tier Real Estate Report is a bi-annual study highlighting market trends for the most expensive homes in Canada’s largest urban centres. It is the only Canadian report to provide commentary on high-end real estate by comparing data for residential properties with values over $1 million*. This report analyzes year over year data and key market variables throughout 2012 and 2013, offering insight into luxury sales trends of properties in Vancouver, Calgary, the Greater Toronto Area (GTA) and Montreal. The Top-Tier Real Estate Report compares sales volume, average days on market and percentage of homes sold over asking price for condominiums, attached homes and single family homes sold for $1-2 million, $2-4 million and over $4 million on MLS. The Top-Tier Real Estate Report also highlights recent luxury home sales in these major Canadian markets.
Despite a sluggish start to 2013, Canada’s luxury real estate market exceeded experts’ expectation in the latter half of the year. Vancouver, Toronto, and Calgary all ended 2013 with positive year-over-year sales growth, with 19% (Vancouver), 13% (Toronto) and 33% (Calgary) gains respectively. Montreal stood as the only major urban centre in Canada to post negative sales growth for 2013 year over year, reporting an 8% decrease in homes sold over $1 million compared to 2012. The bi-annual report, compiled by Sotheby’s International Realty Canada, examines the number of million dollar-plus residential properties sold from January 1, 2012 to December 31, 2013. The report also highlights new data for the second half of 2013 (July 1 to December 31) in Vancouver, Calgary, Toronto and Montreal. The report analyzes the sales volume, number of days on market, and percentage of homes sold over the asking price for million dollar plus homes.
According to Sotheby’s International Realty Canada CEO, Ross McCredie, “2013 proved to be a year that defied many analyst predictions. We expect to see continued growth in western Canada’s high-end housing market, specifically in attached and single family homes in Vancouver and Calgary. Entering 2014 we also anticipate Toronto maintaining its current upward sales trajectory.” Canadian top-tier real estate market highlights include:
Leading the country in overall sales growth, Calgary saw properties over $1 million grow by 33% compared to the year prior. From January to December 2013, property sales over $1 million set records in 10 of the 12 months of the year. A total of 722 homes (condominiums, attached and single family) sold over $1 million in 2013. Attached home sales increased 94% year over year. Rising international immigration, inter-provincial migration and foreign investment continue to put Calgary in an enviable economic position. Entering 2014, the outlook for high-end properties and neighbourhoods remains strong.
Coming out of a sluggish 2012, confidence returned to Vancouver’s high-end real estate in late spring of 2013. A total of 2,505 homes (condominiums, attached and single family) sold over $1 million marking a 19% increase over 2012. Sales in the high end saw the greatest gains in the $4 million-plus price segment, increasing 48% compared to the year prior. In the last half of 2013, the detached home market in Vancouver flourished, with a 74% increase in sales over $1 million compared to the same six-month period last year.
Greater Toronto Area (GTA)
Top-tier residential real estate sales in the Greater Toronto Area (GTA), including Durham, Halton, Peel, Toronto and York saw continued upward luxury sales momentum in 2013. This trend came in spite of a year in which many analysts called for a “cooling”, particularly in luxury condo sales. In spite of a slower start to the year, Toronto’s 2013 top-tier residential home sales saw a resurgence the latter half of 2013. Overall, a total of 5,449 properties (condominiums, attached and single family) sold in 2013 over $1 million, representing an increase of 13% over 2012. Attached homes saw the greatest movement as a category selling 23% more in 2013 than in 2012.
In contrast to the rebound seen in other major centres across Canada, 2013 proved to be a quieter year for Montreal’s high-end real estate market. Montreal experienced an 8% decline in homes sold over $1 million compared to 2012 sales. In total, 359 homes (condominiums, attached and single family) sold over $1 million in 2013, compared to 390 units sold in 2012. The million-dollar-plus condo and attached home markets remained stable from July 1 – December 31, 2013 compared to the last half of 2012, increasing 3% and 2% respectively.
— * 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 neighborhoods 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 resultant from any use of, reliance on or reference to the contents of this document. In the 2013 Year-End Report, Calgary property categories have been updated to reflect the following home types across all time periods and price points: “Condominiums” – Condo Apartments: Single Level Apartments, Multi Level Apartments, Penthouse, Studio Suite, Loft “Attached Homes”- Condo and Single Family Attached: Back Split, Bi-Level, Bungalow, Hillside Bungalow, Raised Bungalow, Bungalow Semi, Hillside Split, Double Wide, Single Wide, Modular, Recreational Use, 2 Storey Spit, 3 Level Split, 4 Level Split, 5 Level Split, 1 and a Half Storey, 2 Storey, 2 and a Half Storey,3 Storey, Stacked Townhouse, Villa, Residential Attached, Duplex Side By Side, Duplex Up and Down, Half Duplex, Townhouse, Tri-Plex, Carriage, Detached Condominium, 4Plex, Cottage “Single Family Homes”- Single Family Detached: Detached (All Styles) GTA property categories reflect: Condominiums- All Condo Types (Residential Condo & Other): Common Element Condo, Condo Apt, Condo Townhouse, Co-op Apt, Co-Ownership Apt, Detached Condo, Leasehold Condo, Locker, Other, Parking Space, Phased Condo, Semi-detached Condo, Time Share, Vacant Land Condo Attached Homes- Attached/Row/Townhouse, Semi-Detached, Duplex (Residential Freehold) Single Family Homes – Detached, Detached w/Common Elements, Links (Residential Freehold)