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Top-Tier Report: 2021 Spring Outlook
Sotheby’s International Realty Canada’s new report, “2021 Canadian Top-Tier Real Estate Spring Outlook” notes that Canada’s metropolitan luxury real estate markets are undergoing an unprecedented phase of evolution and expansion. Canada’s metropolitan luxury real estate market is primed for healthy spring performance, and in most markets, the ceiling for sales activity will be capped by lack of inventory rather than consumer demand.
2021 Top-Tier Spring Outlook Snapshot
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Toronto’s luxury condominium market reflected resilience, and early March data reflects a segment poised to gain ground.
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Vancouver’s luxury market gained significant momentum leading into spring as residential real estate sales over $4 million increased 41% year-over-year in the first two months of 2021.
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Montreal’s residential real estate sales over $1 million in the first 15 days of March also indicate an active spring ahead, as sales climbed 93% year-over-year.
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Calgary’s luxury residential real estate market also emerged from previously entrenched buyers’ market conditions.
Key Influences
Home Renovations Bolster Luxury Price Gains
With renovations elevating the overall quality of housing stock in these metropolitan areas, the short and long term market value of luxury housing across Canada’s major real estate markets is expected to rise through the spring and in the long term.
Multi-Generational Influences on Luxury Single Family Home Market
Across multiple generations of homeowners and homebuyers, dramatic changes in housing and lifestyle preferences are heightening demand and simultaneously reducing single family housing supply on the resale market.
Urban Luxury Condominium Demand Resurges
Depleted inventory and steep price gains in metropolitan single family home markets is also pressing homebuyers to purchase large condominiums out of necessity and a sheer lack of alternatives.
Pent-up Cash, Financial Market Turbulence to Stimulate Luxury Demand
The significant accumulation of cash by mid-and high-income Canadian households during the pandemic is poised for release into the economy as a whole, and the real estate market specifically in the spring and summer of 2021, reinforcing continued demand.
Global Flight of Human and Financial Capital to Canadian Real Estate
Upswing in the volume of international enquiries on luxury property listings in Toronto, Montreal and Vancouver in the preliminary months of 2021 reveal that underlying demand has not dissipated and is set to resurge in the seasons ahead.
For more information about how this may impact your real estate plans and the market please connect.
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