There was a slump in luxury homes prices in Western Canada, while it soared high in Eastern Canada’s main cities in 2019. According to real estate agency Royal LePage that this scenario mirrored the disparities in real estate markets in the different regions in Canada. In Greater Montreal, there was a limited supply of properties that plunged the median price of a detached luxury home by 8.5 percent to $1.85 million for the past twelve months beginning 31st of January. This is exactly the opposite in Greater Toronto, where a 1.2 % gain was posted with sales of $3.63 million, while there was a 6.7 % decrease to $5.39 million in Vancouver.
Vancouver’s Luxury Homes Prices Expected to Drop in 2020
The demand in some areas in Montreal remains unfazed, like in Outremont, Westmount and the West Island. An upsurge of luxury property demands was posted in the neighboring areas of Griffintown and Le Plateau. This was the observation of Marie-Yvonne Paint of the Royal LePage. The company is anticipating a drop in Vancouver luxury house prices by 2 % in 2020 to a median of $5.29 million while the market gains foothold. House prices in the region dropped over the previous year and a half amidst the government’s imposition of mortgage rules and efforts to prevent foreign buyers in investing in the real estate market. Luxury homes are priced threefold higher than the property median price. The threshold prices for a detached luxury home are $3.15 million in Toronto, $4.34 million in Vancouver, $1.51 million in Ottawa, $1.63 million in Calgary and $1.32 million in Montreal.
Decline in Luxury Home Median Price in Calgary
The terrible economy in Calgary continues to affect the real estate market with a decline of 0.8 percent of the luxury home median price to $1.95 million for the past year. Most homeowners are not bent on listing their properties and wait till the market recovers, while the limited supply will result in the drop of prices. Royal LePage predicted a 0.5 % drop in the luxury home median price to $1.94 million. Royal LePage agent John Hripko suggested that this time could open doors to Calgary buyers who were unable to purchase their dream home due to the surge of luxury properties over the years. The increase of 2.7 percent of Ottawa’s luxury home median price to$1.85 million was dictated by the increasing demand from IT bigwigs, public sectors and individuals. Royal LePage visualized a 2.5 percent increase for this year to $1.9 million.
Young Executives and Boomers Compete with Foreign Buyers
Royal LePage Team Realty sales representative Charles Sezlik said that both Glebe and Westboro have high demand for luxury homes despite the low inventory. Rockcliffe Park is still the leading destination for buyers who are looking for high end luxury homes in central locations. The luxury condo market performance reflects the detached dwellings despite the increase in luxury condo median price in Toronto to 7 percent to $2.4 million. Royal LePage sales rep Steven Green, explained that young executives and boomers who are seeking a low maintenance luxury property are going up against foreign buyers and investors, who will use the property as their secondary home. Montreal’s price bounded at 8.3 percent and climbed in Ottawa by 2.2 percent, while it dropped by 2 percent in Calgary and 4.4 percent in Vancouver. Luxury condos are priced at over $1.68 million in Toronto, $1.88 million in Vancouver, $909,000 in Ottawa, $834,000 in Calgary and $1.05 million in Montreal.