Today\u2019s financial climate promises new buying opportunities in luxury real estate: competition has softened and prices in some neighbourhoods have pulled back from a few years ago.<\/p>\n
Many agents believe that the current landscape holds big rewards for proactive buyers. Observing a surge in ultra-luxury condo sales in Oakville, Petrus Engelbrecht, a Senior Vice-President of Sales<\/a> at Sotheby\u2019s International Realty Canada says it\u2019s an indication that discerning individuals of wealth see the market as having reached its low point. \u201cThey are currently in estate-like homes that they\u2019ll sell later, but they like the idea of having a penthouse for that next stage \u2014 and they have the cash to write a cheque when they know that they\u2019re not going to be overpaying.\u201d With promising potential within luxury real estate markets nationwide, Engelbrecht and his colleagues share their insights for buyers.<\/p>\n OAKVILLE<\/strong><\/p>\n While there\u2019s more flexibility in negotiating Oakville home prices, Engelbrecht underscores the importance of handling the city\u2019s luxury real estate transactions with tact. \u201cThese are unique properties with unique personalities behind them,\u201d he says. \u201cBuyers strongly believe that prices should be lower and vendors strongly believe that the value is there. And if you approach people incorrectly, the chances of a transaction coming together diminishes.\u201d For those seeking to negotiate, he recommends allowing their real estate agents to initiate conversations to build the necessary trust with a seller\u2019s agent.<\/p>\n Still, there are opportunities for leverage, especially when a seller is under financial pressure. \u201cRight now, many buyers\u2019 agents are asking, \u2018Would it be beneficial for your seller to close quickly?\u2019\u201d Engelbrecht reports. \u201cThey\u2019re indicating that they could do an all-cash transaction that will quickly relieve any duress,\u201d like in instances where a seller is eyeing another property but needs to close their current home first, so may be motivated to accept a lower offer. \u201cIt\u2019s a chicken-and-egg scenario,\u201d he explains. \u201cPeople can\u2019t buy until they\u2019ve sold, but many homes are taking so long to sell.\u201d<\/p>\n TORONTO<\/strong><\/p>\n Paul Maranger, a Senior Vice-President of Sales<\/a> at Sotheby\u2019s International Realty Canada, sees a shift in Toronto\u2019s luxury real estate towards a balanced market, providing new advantages for buyers. There\u2019s the luxury of time,\u201d he notes, \u201c[Without] the pressure of competing multiple offers, we\u2019re seeing a slower negotiation style with more room for buyers to discuss closing dates and price. The minute the market takes off again, there\u2019s going to be pent-up demand and it\u2019s going to be on fire.\u201d<\/p>\n His business partner and fellow Senior Vice-President of Sales, Christian Vermast<\/a>, advocates for buying overlooked luxury condo buildings built between 1980-2000. \u201cThey\u2019re in prime locations, usually on more land, which means they\u2019re not up against each other like you\u2019ll find with newer constructions. In terms of management, they\u2019re well-oiled machines,\u201d says Vermast. \u201cThey just don\u2019t have glitzy interiors, so they require some creative vision and time to refresh the dated finishes.\u201d For those craving customization and downsizing in the future, these properties are appealing.\u201cDownsizers tend to look at the pre-construction market when they\u2019re starting to plan for a move that\u2019s a few years away,\u201d notes Vermast. \u201cBut pre-construction condos sell at a 30 per cent premium. Given the savings available in the luxury condo market, it makes sense to buy something finished and use the next few years to renovate or rent it out.\u201d<\/p><\/blockquote>\n VICTORIA<\/strong><\/p>\n Comparing the sales of luxury homes in Victoria priced over $4 million in 2021 and 2023, Glynis MacLeod, a Senior Vice-President of Sales<\/a> at Sotheby\u2019s International Realty Canada, says the number of transactions remain constant, however, with an 11 per cent decrease in the average selling price. The listing period has also ballooned from 63 days to 105. MacLeod attributes this to luxury sellers harbouring unrealistic expectations, noting that many properties will eventually be re-listed at lower prices. \u201cThe longer a property has been on the market, the more negotiable it is,\u201d she says. \u201cA luxury home in Victoria might be someone\u2019s second home. When the market contracts, those are the properties people want to sell first.\u201d<\/p>\n Building on that point, financial pressures serve as an incentive to close quickly, particularly for all-cash offers. \u201cCash is king,\u201d she says, adding that Victoria\u2019s luxury real estate market presents a robust investment opportunity. \u201cWe\u2019re unique because we offer retirees the promise of a warm climate in Canada [where they can] receive healthcare.\u201d MacLeod believes the influx of remote workers relocating to Victoria are contributing to the market\u2019s current sustained demand. \u201cWhen the market slows down, people focus on the core neighbourhoods, like Oak Bay, where prices remain consistently high. But when the market picks up, that\u2019s when more people start looking beyond those core areas.\u201d<\/p><\/blockquote>\n![\"\"](\"https:\/\/sothebysrealty.ca\/insightblog\/wp-content\/uploads\/2024\/04\/City-Limits-Decreasing-Prices-Inspire-Buyers-to-Purchase-a-Luxury-Property.-or-Two-1.jpg\")
3165 Sherringham Place & 3130 Uplands Road, Victoria, BC<\/a><\/div>\n![\"\"](\"https:\/\/sothebysrealty.ca\/insightblog\/wp-content\/uploads\/2024\/04\/City-Limits-Decreasing-Prices-Inspire-Buyers-to-Purchase-a-Luxury-Property.-or-Two-2.jpg\")
2124 9 Avenue NW, Calgary, AB<\/a><\/div>\n