Market Update: RE/MAX Canada’s 2023 Spotlight on Luxury
Luxury home sales across Canada are predicted to increase in the second quarter of 2023.
Overall, sales activity is lacking but not due to buyer demand. While inventory across Canada is sitting at pandemic levels according to RE/MAX Canada’s 2023 Spotlight on Luxury, pent-up demand for homes, especially lower-priced residential real estate, is elevating home values across the board.
“Inventory continues to be the lynchpin of the Canadian housing market. The pattern of heating and cooling housing markets emerges time and time again, and it is directly linked to our issues with supply and the inability of governments at all three levels to get shovels in the ground across our nation.” Christopher Alexander, President of RE/MAX Canada.
Some of Canada’s key luxury home markets have seen price increases year-over-year, like Calgary and Moncton, while others are holding relative to the first quarter, like GTA, Hamilton-Burlington, Ottawa, and Greater Vancouver, according to the report.
Though the number of home sales is down, almost 20% of homes that did sell in GTA in the first quarter of 2023 priced above $3 million sold for the list price or more.
As inventory for residential real estate remains slim competitive offers are becoming more common, and the demand for homes has reached the luxury market including the “uber-luxe segment”, says RE/MAX.