Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Calgary, Victoria and Oakville in the first nine months of 2016. In the Greater Toronto Area and Vancouver, Canada’s largest high-end housing markets, sales of $3 million-plus homes saw significant increases, of 86 per cent in the GTA and 41 per cent in Vancouver.
While Vancouver sales of $1 million properties were up by three per cent overall, single-family home sales in that range declined by seven per cent year-over-year. One factor contributing to this decrease is the foreign buyer tax implemented by the provincial government in August, which has resulted in slowing demand for single-family detached homes from off-shore buyers.
“Vancouver’s high-end market has experienced a slowdown in the past several months after a period of record-breaking sales,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Part of this may be due to the tax on foreign buyers that was introduced in August, though there may be other factors at play as well, such as higher inventory lessening buyers’ sense of urgency.”
The Greater Toronto Area’s market has experienced continued strong demand for luxury properties, with sales of homes over $3 million rising by 86 per cent year-over-year. This is largely attributable to overall price appreciation in the market, driven by low inventory and high demand for single-family homes, which has resulted in more homes meeting the higher dollar threshold. Additionally, significant price appreciation throughout the housing market has allowed move-up buyers to build up enough equity in first or second homes to purchase a high-end home.
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