Canada’s Luxury Real Estate: Price Stability Trends

Royal LePage reports on the increasing price stability in Canada’s luxury real estate market, offering insights for buyers and investors in 2023.

Canada’s luxury real estate market has exhibited a remarkable degree of price stability, diverging significantly from the more volatile mainstream market, as elucidated in the recently published 2024 Royal LePage Carriage Trade Luxury Market Report. Released on Thursday, the report reveals that luxury real estate prices have experienced modest gains in certain regions while witnessing slight declines in others during the initial eight months of the year. Notably, the report underscores the diminished presence of pronounced “peaks and valleys” characteristic of typical real estate markets within the luxury sector.

The analysis encompassed data from ten of Canada’s most prominent real estate markets, including Toronto, Vancouver, Montreal, and Halifax. Among these, Halifax emerged as a standout, boasting the highest year-over-year price increase at an impressive 8.6 percent, despite a notable 16.7 percent decrease in luxury sales within the city. Conversely, Toronto's luxury real estate market recorded a year-over-year price increase of 3.9 percent, while other major luxury markets, such as Vancouver and Montreal, experienced price declines.

In terms of sales activity, the report highlights a general uptick in luxury home sales across nearly all major cities, with the notable exceptions of Vancouver, Toronto, and Halifax during the same timeframe. Winnipeg’s luxury market, in particular, showcased remarkable dynamism, achieving a staggering year-over-year sales increase of nearly 62 percent. Additionally, sales surged by 39.4 percent in Edmonton, 30.9 percent in Calgary, 30.4 percent in Quebec City, and 14.6 percent in Regina. In stark contrast, Toronto's luxury real estate market experienced a 5 percent decline, while Vancouver faced a dramatic 38.8 percent decrease. Montreal, however, managed to eke out a slight sales increase of 8.3 percent, following a year-over-year price drop of 2.8 percent.

Overall, Royal LePage anticipates a “brisk” fall season ahead, projecting increased activity across all major cities in the forthcoming months. As the luxury market continues to navigate the complexities of economic fluctuations, stakeholders remain poised for a dynamic and engaging real estate landscape.