According to a report released today by Sotheby’s International Realty Canada (sothebysrealty.ca), Eastern Canada’s major metropolitan areas led the nation in top-tier real estate performance in 2018, as Western Canadian markets buckled under pressure from local stressors ranging from taxation and regulatory interventions in Vancouver, to strained economic conditions in Calgary. Buoyed by population gains and steady economies, sales over $1 million in the Greater Toronto Area (GTA) strengthened over the course of 2018, while Montreal’s luxury real estate market posted new records. Vancouver and Calgary’s top-tier real estate markets retreated further into buyers’ market territory, as excess supply overtook consumer demand. Across the country, markets continued to face headwinds of rising interest rates and tightened mortgage guidelines.
“Canada’s top-tier real estate market performance was dominated by Eastern Canada’s two largest metropolitan areas in 2017. Toronto’s top-tier real estate market emerged as a bastion of resilience, due in large part to the region’s stable economy and rapidly expanding population. Consumer psychology bounced back from temporary setbacks brought on by policy changes, rising rates and tighter lending guidelines,” says Brad Henderson, President & CEO, Sotheby’s International Realty Canada. “Montreal’s record-setting momentum continued in 2018, but there are clear indications that the market is now settling in at healthy levels.”
According to Henderson, both the Vancouver and Calgary top-tier real estate markets remain vulnerable to further declines as inventory builds, albeit for different reasons. However, there are signals that prospective buyers and sellers who remained on the sidelines in 2018 are prepared to re-engage in market activity in the coming months.
President & CEO Brad Henderson On BNN
President and CEO Brad Henderson talks to Business News Network about the latest trends in Canada’s top-tier housing market leading into 2019.