Canada’s luxury real estate real estate market experienced more price stability and less fluctuation compared to the mainstream market, according to a new report.
The 2024 Royal LePage Carriage Trade Luxury Market Report, released Thursday, found that luxury real estate prices saw slight gains in some regions and incremental declines in other areas during the first eight months of the year. According to the report, there were less pronounced “peaks and valleys” in luxury markets compared to typical real estate markets.
“Homes typically trade hands at the high end of the market at a slower pace than we see in the industry overall, as the funnel of potential purchasers narrows as the price of properties climb. This affords luxury buyers the luxury of acting more deliberately, taking their time in a quest to find the right home,” Phil Soper, the president and CEO of Royal LePage, said in a press release Thursday.
“While market conditions can vary from one city or province to the next, the dynamics at play in luxury real estate markets from coast to coast remain consistent: buyers in this segment know what they want and they are willing to wait for it.”
The report assessed data from 10 of Canada’s largest real estate markets, including Toronto, Vancouver, Montreal and Halifax.
Of the 10 major markets, Halifax had the highest year-over-year price increase at 8.6 per cent, while luxury sales in that city decreased by 16.7 per cent.
The cost of luxury real estate in Toronto also had a year-over-year increase of 3.9 per cent, whereas other Canadian cities with major luxury markets like Vancouver and Montreal saw their prices decrease.
Sales activity
The report also highlighted that sales of luxury homes rose on an annual basis in nearly all major cities, except for Vancouver, Toronto and Halifax during that same time period.
Among some of the most active sales activity was recorded in Winnipeg’s luxury market, which saw the largest increase nearing 62 per cent year-over-year. In addition, sales increased by 39.4 per cent in Edmonton, 30.9 per cent in Calgary, 30.4 per cent in Quebec City and 14.6 per cent in Regina.
Sales in Toronto’s luxury market decreased by five per cent, and Vancouver’s market saw a 38.8 per cent decrease.
Montreal saw a slight increase in sales at 8.3 per cent, following a price drop of 2.8 per cent year-over-year.
Overall, LePage says to expect a “brisk” fall, as all major cities should see increased activity in the months ahead.
Methodology:
Data was compiled from local brokerage and board statistics between Jan. 1, 2023, to Aug. 31, 2023 and Jan. 1, 2024 to Aug. 31, 2024.