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8,595 home sales were reported through the Toronto Real Estate Board MLS in July 2019, continuing the trend of improved year over year sales with a 24.3 per cent jump from the same month a year earlier. The average selling price for all home types combined was up by just over 3 per cent over the same period and continues to be driven by higher density home types. On average, single-detached home prices remained lower than last year’s levels in the 416 area but had a modest increase of 2.5 per cent in the 905 region.

Click on the link below for a full report!

August 2019 Edition: Real Estate Market Watch

7,711 home sales were reported through the Toronto Real Estate Board MLS in August 2019, representing a 13.4 per cent increase over August’s 2018 results. Detached home sales in the 905 area showed the most significant increase of all property types with a 24.5 per cent rise year-over-year. The federal government’s First-Time Home Buyer Incentive (FTHBI) that came into effect on September 2 may add further momentum, as the 905 area is anticipated to be a more likely beneficiary of the program than the 416 area. Total Active Listings continue to be an important part of the story with a drop of available inventory across the board of 11.16 per cent from last year. The 416 area had under 30 per cent of the 15,870 Active Listings reported by TREB for August, indicating that the 905 is heating up faster than the City.

September 2019 Edition: Real Estate Market Watch

July 13, 2017

With recoveries underway in Vancouver, Calgary and Edmonton, home prices rise in the majority of metropolitan areas nationwide

Greater Toronto Area witnesses temporary slowdown in sales activity as the Ontario Fair Housing Plan takes effect

TORONTO, July 13, 2017 – According to the Royal LePage House Price Survey[1] and Market Survey Forecast released today, Canada’s residential real estate market posted strong home price gains in the second quarter of 2017, with the majority of metropolitan markets across Canada displaying expansionary trends. The significant Greater Vancouver housing correction that began in August 2016 turned a corner in the second quarter of 2017. Home prices in B.C.’s Lower Mainland are now poised to resume an upward trajectory nearly a year after provincial regulatory intervention bruised consumer confidence and depressed sales activity. On the other side of the mountains, Alberta’s economic rebound continued as Calgary posted its strongest year-over-year home price gains since the downturn in the price of oil. The Greater Toronto Area (GTA), a market that Royal LePage CEO Phil Soper characterized as “Canada’s least healthy” in the first quarter, saw moderating sales activity, as the combination of eroding affordability and government legislation has pushed many buyers to the sidelines – at least temporarily bringing balance to the country’s largest market and slowing home price appreciation within the region.

The Royal LePage National House Price Composite, compiled from proprietary property data in 53 of the nation’s largest real estate markets, showed that the price[2] of a home in Canada increased 13.8 per cent year-over-year to $609,144 in the second quarter. When broken out by housing type, the price of a two-storey home rose 14.6 per cent year-over-year to $725,391, while the price of a bungalow increased by 10.7 per cent to $511,965. During the same period, the price of a condominium climbed 13.4 per cent to $397,826. Looking ahead to the remainder of the year, Royal LePage forecasts that the national aggregate price of a home will increase by 9.5 per cent in 2017 to $617,773 when compared to year-end, 2016.

“Following a period of unprecedented regional disparity in activity and price appreciation, we are now seeing a return to healthy growth in the majority of Canadian housing markets,” said Phil Soper, president and CEO, Royal LePage. “The white-hot markets are moderating to very warm; the depressed markets are beginning to grow again. Canadian housing is in great shape – a statement that I certainly did not make last quarter.”

In the quarter, sanity began to return to the Greater Toronto Area, where a slowing of both price appreciation and sales activity was evident. In Greater Vancouver and Calgary, home sales began to recover after significant market downturns.

“The rate of national house price appreciation that we experienced in the second quarter continues to be above what we would consider a normal range, driven primarily by very strong year-over-year price growth across much of Ontario,” continued Soper. “Yet the GTA’s recent drop in sales activity may well signal calmer waters ahead for the province. The 20 to 30 per cent year-over-year increases in home values that characterized Toronto and its adjoining areas in recent months are not, in our view, sustainable or healthy. Now, as inventory inches higher and demand slows to a more orderly pace, some much needed balance has been returned to the market. For the first time in years, buyers are able to include reasonable conditions in their offers and multiple bid situations are somewhat less frequent.”

In Canada’s westernmost province, sales activity and price appreciation are both on the rise, as market trends in Greater Vancouver continue to mend and prospective homeowners seek more affordable living in cities like Kelowna and Victoria. While the region has witnessed consumer confidence progressively strengthen over the past twelve months, there is some new downside risk to the provincial housing market with the uncertainty that comes with the installment of a new provincial minority government.

“The question for our largest markets is, how long will the reprieve last?” added Soper.

“In Vancouver and Toronto, we have buoyant economies that are attracting thousands of new residents each year. These people will need a place to live and no amount of initiatives aimed at quelling demand will change that. Like public transit, housing policy is something which needs a persistent, long term focus.”

In Quebec, the Greater Montreal Area’s housing market showed promising gains in the second quarter, with the city centre witnessing near double-digit growth. The region’s continued economic revival, and unemployment rate, which has fallen to its lowest level since Statistics Canada started tracking it in 1976, are supportive of an expanding housing market.

“Montreal celebrates its 375th anniversary this year, and with the celebration comes a sense of renewed optimism,” said Soper. “The city’s economic momentum and improved consumer confidence have led to one of the healthiest residential real estate markets seen in a generation.”

During the quarter, the overall health of the Canadian economy has been a significant contributor to the stability of the country’s real estate market. Canada’s GDP is now expected to exceed the 2.6 per cent growth rate previously forecast by the Bank of Canada, and this strength is broadly based, with all provinces, except for Newfoundland and Labrador, expected to see positive economic growth this year. The unemployment rate reported in May was 6.6 per cent, coming in at a nine-year low. As a result, the Bank of Canada yesterday increased the overnight rate one-quarter of a percentage to 0.75, the first interest rate hike in seven years – a significant monetary gesture and signal of the country’s economic strength.

“Since the financial crisis took hold nearly a decade ago, Canada’s economy has been supported by what amounts to crisis-level monetary policy. “While many commentators have feared the effect of an interest rate hike, we believe that the market is better served by a healthy economy that requires a return to normal conditions. Canadian homeowners are prepared for the marginal increase in mortgage rates that the most recent Bank of Canada rate hike will bring,” concluded Soper.

Within the last two years, Canadians spent more on mortgage principal payments than mortgage interest payments for the first time since Statistics Canada began compiling its data in 1990. While the ratio of debt to disposable income is relatively high, it dropped down in the first quarter of the year to 166.9 per cent, and Canadians’ interest-only debt service ratio was a record low 6.1 per cent. According to the Canada Mortgage and Housing Corporation, mortgage delinquency rates in the country’s hottest markets, Toronto (12 basis points) and Vancouver (15 basis points), were less than half of the national average (34 basis points).

Provincial and City Summaries and Trends

In the second quarter of 2017, the aggregate price of a home in Greater Vancouver increased 2.6 per cent year-over-year to $1,181,309, showing a marked decline in home appreciation levels from recent quarters. North Vancouver posted a stronger 7.5 per cent year-over-year increase to $1,369,091, while the city of Vancouver in contrast remained relatively flat, rising 0.1 per cent to $1,385,431. During the same period, the region’s most expensive market of West Vancouver fell  4.7 per cent year-over-year to $3,009,126. In the surrounding suburbs, Langley posted the highest year-over-year appreciation in the region, increasing 12.3 per cent to $791,721, while the previous leader, Richmond, dropped to a moderate 2.5 per cent increase to $1,057,629.

British Columbia’s economy continues to show its strength with little sign that the government’s efforts to cool the housing market have impacted the broader economy. As of June, the province’s unemployment rate was 5.1 per cent, a drop of 0.5 per cent from May, and employment grew a stunning 4.4 per cent over the past year. The surprising resilience of the British Columbia economy, despite slowed growth in the housing market, has caused some forecasters to boost their growth expectations for the province. For the year, Royal LePage expects Greater Vancouver to see a low single-digit price increase in 2017.

Following two years of recession, Alberta’s economy is now on the upswing, with some forecasters expecting it to lead the rest of the provinces in growth this year and next. In June, the provincial unemployment rate fell by 40 basis points to 7.4 per cent. Alberta employment is now up by 2.2 per cent year-over-year, with virtually all of the increases coming in the form of full-time jobs. With improvement in the overall economy, Calgary and Edmonton are both expected to see upticks in employment. This is especially true for Calgary, which has stagnated since the energy downturn took hold in 2015. The Conference Board of Canada predicts that the city will add 8,800 jobs this year and a further 10,100 in 2018. These trends were reflected in the residential housing market in the second quarter, during which Calgary and Edmonton posted year-over-year home price increases of 4.4 per cent and 3.8 per cent to $472,798 and $387,989, respectively. With economic stability reemerging in the region, home prices are expected to increase in the low- to mid-single-digit range by year-end.

Saskatchewan is also benefiting from a more positive outlook for the energy industry and is expected to grow this year after contracting in 2016. While the province’s economic recovery is in progress, the effects have yet to be truly felt in the residential real estate market, which remained somewhat soft in the second quarter. Both Regina and Saskatoon posted slight year-over-year aggregate home price decreases of 1.3 and 1.7 per cent to $325,927 and $379,864, respectively, with prices expected to remain on a similar trajectory for the remainder of 2017.

In the second quarter of 2017, the aggregate price of a home in Winnipeg remained relatively flat, rising 0.2 per cent year-over-year to $281,568. Manitoba has been benefiting from an export-led surge that has helped its manufacturing sector and improved output in agriculture. These factors are expected to continue into 2018, with a major Canadian financial institution stating in June that they expect Manitoba to grow 1.9 per cent this year and 2.2 per cent in 2018. At 5.3 per cent, Manitoba also had among the lowest unemployment rates in the country as of May. Looking ahead, Royal LePage anticipates that Winnipeg will see a slight uptick in appreciation by the end of the year.

Powered by a surging U.S. economy and the strong housing sector, Ontario is emerging as the economic leader among Canada’s provinces. The job market in Ontario reflects the health of the overall economy. Over the twelve months ended in June, employment in Ontario rose by 75,000 (1.1 per cent). The unemployment rate within the same month was 6.4 per cent, and could have been even lower were it not for the fact that, many people, likely encouraged by the strong economy, are now choosing to enter the labour force.

As a result of strong housing demand extending from the province’s robust employment and economic prospects, southern Ontario saw the highest home price gains in the country. In the second quarter, the aggregate price of a home in the Greater Toronto Area rose 24.0 per cent to $837,232, while the price of a home in the City of Toronto jumped 22.8 per cent year-over-year to $843,590. In surrounding suburbs, year-over-year price gains also remained strongly visible with Vaughan, Oshawa, Richmond Hill, Markham, Mississauga and Oakville, rising 27.5, 27.1, 26.6, 25.9, 25.1 and 23.7 per cent to $1,100,478, $564,189, $1,334,946, $1,063,022, $725,092 and $1,088,420, respectively. During the quarter, areas surrounding the GTA continued to show unprecedented levels of home price appreciation. Niagara/St. Catharines’ aggregate home price rose 17.7 per cent to $345,155, while Kitchener/Waterloo/Cambridge saw a 20.7 per cent year-over-over increase to $435,367. During the same period Windsor and London also saw double-digit increases of 15.9 per cent to $211,209 and 11.6 per cent to $320,824, respectively. Despite witnessing a slight decrease in sales activity and pricing, the majority of Ontario’s housing markets are expected to continue seeing strong year-over-year growth for the remainder of 2017, led by continued double-digit increases in the Golden Horseshoe, as the region continues to coast on the high appreciation experienced at the beginning of the year.

Quebec’s economy has continued to build strength and momentum in 2017, with consumer spending, housing, trade and manufacturing benefiting from strong macroeconomic conditions. Like in Ontario, U.S. strength coupled with the low Canadian dollar is fueling provincial exports. The province is also benefiting from fiscal stimulus in light of the government’s success in balancing its books, having this year posted the third consecutive balanced budget. In May, Quebec’s unemployment rate fell to a record low of 6.0 per cent, maintaining that level in June and keeping the region well below the national average of 6.5 per cent. The Conference Board of Canada cited Quebec City and Montreal as growing and expects both cities to pick up speed throughout 2017. In Quebec City growth is coming mainly from the service sector, including commercial and industrial real estate and tourism, while Montreal’s economic improvement is being driven by infrastructure investment and manufacturing.

Quebec’s exceptional economic performance is reflected in the housing markets of the province’s major urban centres. For the second consecutive quarter, the Greater Montreal Area posted price increases across all property types and regions studied. In the second quarter, the aggregate price of a home in the Greater Montreal Area rose 6.2 per cent to $372 071, while the City of Montreal saw a year-over-year gain of 9.1 per cent to $463,787. During the same period, Quebec City posted an aggregate price increase of 3.8 per cent to $299,377. In the coming year, both cities are expected to see healthy home price increases as economic strength in the province continues.

In Atlantic Canada, Newfoundland and Labrador’s economies have been on the decline since the onset of the energy downturn. In the second quarter, St. John’s posted a 3.1 per cent year-over-year decline in home prices to an aggregate price of $320,164. At the same time, New Brunswick, Nova Scotia and Prince Edward Island saw homes prices rise in most major markets studied. Saint John and Fredericton posted the highest increases in the Atlantic region, at 5.7 per cent to $215,923 and 2.7 per cent to $245,150, respectively, while Moncton home prices decreased by 2.9 per cent to $181,364. During the same period, appreciation in Halifax and Charlottetown were essentially on par, showing moderate year-over-year gains of 1.9 per cent and 1.8 per cent, respectively, to $302,469, and $228,352. New Brunswick, Nova Scotia and Prince Edward Island are expected to see further economic growth in the coming year, along with moderate home price gains in most cities, while Newfoundland and Labrador is expected to see further drops.

View Aggregated regions and the Royal LePage National House Price Composite* (.PDF)

*Data presented in the tables above may not match same period data reported previously due to subsequent market updates

View Royal LePage 2017 Market Survey Forecast[3]

About the Royal LePage House Price Survey

The Royal LePage House Price Survey provides information on the three most common types of housing in Canada, in 53 of the nation’s largest real estate markets. Housing values in the House Price Survey are based on the Royal LePage National House Price Composite, produced quarterly through the use of company data in addition to data and analytics from its sister company, Brookfield RPS, the trusted source for residential real estate intelligence and analytics in Canada.  Commentary on housing and forecast values are provided by Royal LePage residential real estate experts, based on their opinions and market knowledge.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of over 17,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.

For more information visit: www.royallepage.ca.

[1] Powered by Brookfield RPS

[2] Aggregate prices are calculated via a weighted average of the median values of homes for reported property types in the regions surveyed

[3] The Royal LePage Market Survey Forecast provides projections for aggregate national and regional house prices at year-end (fourth quarter)

8,860 home sales were reported through the Toronto Real Estate Board MLS in June 2019, continuing the trend of improved year over year sales with a 10 per cent jump from the same month a year earlier. The average selling price for all home types combined was up by 3 percent over the same period and continues to be driven by a combination of the low inventory of available properties being outpaced by sales.  Bank of Montreal senior economist Robert Kavcic notes that the statistics for June 2019 are “indicative of a market that has all but balanced out – the sales-to-new-listings ratio is close to the 10-year average again.”

Click below for the full report.

July 2019 Edition: Real Estate Market Watch

9,989 home sales were reported through the Toronto Real Estate Board MLS in May 2019, soaring almost 19 percent from the same month a year earlier. May sales were the highest on a seasonally adjusted basis since December 2017 – up roughly 10 percent from April which had a 16.8 percent jump in year-over-year sales. The average selling price for all home types combined was up by 3.6 percent over the same period. Lack of supply, however, continues to be an ongoing concern as year-over-year growth in new listings at just under 1% was significantly outpaced by sales.

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June 2019 Edition: Real Estate Market Watch

• Greater Toronto Area’s luxury condo market sees highest price appreciation across Canada’s five largest cities over twelve-month period
• Greater Montreal Area’s luxury property market forecast to see the strongest appreciation rate looking across Canada’s five largest cities
• The median price of a luxury house in Greater Vancouver is forecast to decrease 7.1 per cent, or approximately $410,000
• Luxury house prices in Calgary stabilize and see modest lift while luxury condo prices remain soft over twelve-month period
• Ottawa’s luxury property market posts healthy price appreciation over twelve-month period 

Toronto, February 21, 2019 – The median price of a luxury property in the Greater Toronto Area, Greater Montreal Area and Ottawa saw healthy price appreciation over twelve months ending January 31, 2019 compared to the previous twelve month period.^[1] Luxury condominiums in the Greater Toronto Area posted the highest year-over-year price appreciation, rising 10.2 per cent to $2,268,571, followed by luxury condominiums in the Greater Montreal Area, which rose 8.4 per cent year-over-year to $1,295,401.

“For a second year in a row, luxury condos in Toronto and Montreal have made significant gains in price appreciation and we expect this trend to continue through 2019, however, at a more modest pace in Toronto,” said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Limited.

Across Canada’s five largest cities, Greater Vancouver was the only city to post a decline in median luxury home prices. The number of luxury houses trading hands declined over the past two years, a trend that initially began with the introduction of measures to cool the city’s real estate market in 2016. Luxury home values have dipped but remain remarkably steady as many Vancouverites refuse to sell at what they perceive as a discount. Exasperating soft demand, Chinese nationals, an important luxury buyer demographic, have seen restrictions placed on their ability to transfer wealth to Canada.

While sales remained low throughout 2018 in Greater Vancouver, luxury house sales in the Greater Toronto Area decreased a more modest 3.6 per cent year-over-year from June 1, 2018 through January 31, 2019. However, as a result of low sales activity during the 2018 spring market, luxury house sales in Greater Vancouver and the Greater Toronto Area declined 50.5 per cent and 40.0 per cent, respectively, during the twelve month period ending January 31, 2019. During the same period, luxury condominium sales in Greater Vancouver decreased 32.2 per cent, while luxury condominiums in the Greater Toronto Area decreased 3.4 per cent. 

“Compared to last year, we are expecting an increase in luxury sales activity in both Greater Vancouver and the Greater Toronto Area,” said Somers. “Price reductions and increased selection in Greater Vancouver are expected to stimulate the luxury property market while an expected return to more normal activity in the Greater Toronto Area will be a marked improvement over last year’s spring market.”

Greater Toronto Area 

The median price of a luxury condo in the GTA outpaced luxury houses and condos in Canada’s five largest cities; Significant year-over-year decline in luxury house sales was limited to the 2018 spring market

Luxury house prices in the Greater Toronto Area returned to healthy gains indicating that the effects of measures targeting foreign buyers within the Ontario Fair Housing Plan have now been absorbed by the luxury property market. While foreign buyers represent a small segment of buyers in the GTA, the introduction of the measures had stifled consumer confidence among local buyers dampening house prices.

The median price of a luxury house rose 3.1 per cent to $3,575,702 year-over-year during the twelve-month period ending January 31, 2019 compared to the same period the previous year. Meanwhile, the median price of a luxury condominium surged 10.2 per cent year-over-year to $2,268,571 during the same period, which was the highest median price gain seen in both luxury housing types across Canada’s largest five cities.

“While demand for luxury houses softened last spring, demand for luxury condominiums remained consistent and strong. This demand quickly put upward pressure on luxury condo prices because the inventory for luxury condo buyers isn’t there. We have a shortage of luxury three bedroom listings with the finishes and amenities that buyers are looking for,” said Elli Davis, sales representative, Royal LePage Real Estate Services Ltd.

Luxury house sales for the full twelve-month period showed a stark contrast leading up to and during the spring market compared to the remainder of the year, while luxury condominium sales remained fairly consistent compared to the prior year. For the twelve months analyzed, luxury house sales decreased 40.0 per cent, however, when examining sales from June 1, 2018 to January 31, 2019 to the same period the year prior, sales decreased a more modest 3.6 per cent. For the full twelve-month period, luxury condominium sales decreased 3.4 per cent compared to the year prior.

“Toronto’s luxury home market has regained its momentum and we are expecting a more active spring market than last year with the exception of a few quiet pockets,” said Davis. “Generally speaking, demand for luxury property is stronger in the city of Toronto compared to its surrounding areas.”

When looking to the next twelve months, the median price of a luxury house in the Greater Toronto Area is forecast to increase 3.2 per cent year-over-year to $3,691,700, while the median price of a luxury condominium is forecast to increase 5.4 per cent to $2,390,405 at the end of January 2020. Luxury house sales are expected to benefit from a more active spring market while luxury condominium sales are expected to be consistent with the year prior.

Greater Montreal Area 

Luxury condominium sales outpace luxury detached house sales in the GMA. 

The Greater Montreal Area’s luxury property market showed continued momentum in both prices and sales mirroring its healthy economy and overall real estate market. The median price of a luxury house rose 5.4 per cent to $1,680,942 year-over-year during a twelve-month period ending January 31, 2019 compared to the same period the previous year. Meanwhile, the median price of a luxury condominium surged 8.4 per cent year-over-year to $1,295,401 during the same period.

Among the factors that are impacting luxury prices and sales in Montreal, low inventory ranks first in the luxury detached market according to Marie-Yvonne Paint, real estate broker, Royal LePage Heritage.

“Provincial measures to dampen foreign buyer activity in Toronto and Vancouver have increased demand for luxury property in Montreal, but this demand is mostly seen within the downtown condo market,” said Paint. “We are seeing an increase in demand for presale condo units where investors will buy several units to benefit from a discount.”

During the twelve months ending January 31, 2019, the Greater Montreal Area’s luxury house sales climbed 21.4 per cent year-over-year, while luxury condominium sales in the region surged 28.9 per cent, outpacing the detached luxury segment.

While the luxury condominium market is showing exceptional strength, there is still an excellent selection of listings available, with approximately 350 resale units available in February 2019.

For buyers looking to purchase their first luxury home, Montreal has a lot to offer.

“As a first-time luxury home buyer, the Montreal luxury condo market offers great diversity. Developers are building condos based on the city population, family status and household wealth, often reserving about 30 per cent of their building for luxury units. This is perfectly suitable for those wanting to enjoy luxury living with typical condo amenities and lower maintenance fees. Condominiums that are predominantly luxury units often have significantly higher fees because there are fewer units and more luxury amenities,” added Paint.

When looking to the next twelve months, the median price of a luxury house in the Greater Montreal Area is forecast to increase 6.6 per cent year-over-year to $1,792,037, while the median price of a luxury condominium is forecast to increase 7.7 per cent to $1,395,056  at the end of January 2020.

Greater Vancouver 

Region’s median home prices for both luxury houses and condominiums dip after sustained low sales activity 

In the twelve-month period ending January 31, 2019, the median price of a luxury house in Greater Vancouver decreased 1.7 per cent year-over-year to $5,751,928, while the median price of a luxury condominium decreased 0.6 per cent to $2,680,064. Despite ongoing year-over-year low sales volume, luxury home prices were steady leading up to September 2018. In the last four months of 2018 and into 2019, sellers who were no longer able to wait out low demand began accepting reduced offers, which put downward pressure on home prices.

“We have a growing number of buyers sitting on the sidelines watching prices, but they are also concerned about the unpredictability of government regulation and whether right now is the best time to buy,” said Brock Smeaton, sales representative, Royal LePage Sussex.

Sales of luxury houses declined for a second year, decreasing 50.5 per cent year-over-year during the twelve-month period studied while luxury condominium sales decreased 32.2 per cent year-over-year.

“Luxury properties in Greater Vancouver are softening in price, but the lower-end luxury market is faring better than the upper-end,” added Smeaton. “For buyers considering the city’s most luxurious properties, it is a great time to buy in terms of price and selection.”

When looking to the next twelve months, the median price of a luxury home in Greater Vancouver is forecast to decrease 7.1 per cent year-over-year to $5,341,936, while the median price of a luxury condominium is forecast to decrease 3.7 per cent to $2,580,115. Sales are forecast to increase modestly as price reductions and excellent selection of inventory are expected to stimulate market activity.

Calgary 

Calgary’s luxury house market forecast to see modest price appreciation

The median price of a luxury house in Calgary increased 3.2 per cent to $2,012,676 year-over-year during the twelve months ending January 31, 2019. Meanwhile, the median price of a luxury condominium remained relatively flat, rising 0.5 per cent year-over-year to $903,106 during the same period.

“While Calgary’s luxury condo market is still showing some softness, our luxury house market has stabilized after years of sustained low prices,” said John Hripko, associate broker, Royal LePage Benchmark. “However, some of the median price appreciation gain can be attributed to a relatively healthier upper-end luxury property market while price reductions to lower-priced luxury properties have pushed some listings out of the luxury category.”

During the twelve-month period ending January 31, 2019, sales of luxury houses increased 10.3 per cent from the year before, while condominium sales decreased 18.6 per cent.

“Overall, Calgary’s luxury home market today is very different from the days when the price of oil was near its peak, however, there is still good demand for luxury houses in central communities on the south-side such as Elbow Park, Mount Royal and Brittania, among others,” said Hripko. “It’s been years since Calgary’s luxury home prices first corrected and listing prices typically reflect current market value.”

When looking to the next twelve months, the median price of a luxury home in Calgary is forecast to increase 1.3 per cent year-over-year to $2,039,564, while the median price of a luxury condominium is forecast to modestly decrease 0.6 per cent to $898,047. Sales for both luxury houses and condos are forecast to be flat.

Ottawa

Ottawa’s luxury home market forecast to continue to appreciate after a year of healthy price gains and sales

Ottawa’s luxury home market posted a second year of healthy price appreciation during the twelve months ending January 31, 2019. The median price of a luxury house in Ottawa increased 5.0 per cent year-over-year to $1,811,716 compared to the same period the previous year. Meanwhile, the median price of a luxury condominium increased 3.8 per cent year-over-year to $1,005,549 during the same period.

“While the typical luxury buyer in Ottawa is usually a local buyer who will live in the property, there is a strong sentiment among buyers that Ottawa’s luxury home market is a sound financial investment,” said Charles Sezlik, sales representative, Royal LePage Team Realty. “The local economy is doing well, spurred by our booming technology sector, which is creating both wealth and jobs in the region. In addition to a growing buyer demographic, Ottawa’s luxury home market is benefitting from healthy consumer confidence.”

Sezlik added that compared to luxury home prices in other Canadian major real estate markets, Ottawa still has considerable room to grow.

“The lower end of the luxury market is very competitive. A good listing in a good location will not stay on the market long,” said Sezlik. “Luxury properties priced over 2 million had a slower start at the beginning of 2018 but demand quickened in the second half of the year. We are seeing this demand continue through the start of 2019 and expect another year of healthy sales and price appreciation.”

During the twelve months ending January 31, 2019, Ottawa’s luxury house sales were flat year-over-year, however, luxury house sales more than doubled compared to two years prior, rising from 26 sales to 60 sales.

When looking ahead, the median price of a luxury house in Ottawa is forecast to increase 4.2 per cent year-over-year to $1,887,624, while the median price of a luxury condominium is forecast to increase 3.1 per cent to $1,036,747 in the next twelve months.

Luxury real estate segment price appreciation in Canada’s five largest cities (.pdf)

About the Royal LePage Carriage Trade Luxury Properties Market Release

The Royal LePage Carriage Trade Luxury Properties Luxury Market Release provides information on the two most common types of luxury housing in Canada using lower thresholds of three times the median value of each segment relative to the overall property type’s median home value in that city. Real estate values use company data in addition to data and analytics from its sister company, RPS Real Property Solutions, the trusted source for residential real estate intelligence and analytics in Canada. Commentary on real estate markets are provided by Royal LePage residential luxury real estate experts, based on their opinions and market knowledge. Sales data is compiled by Royal LePage through the Toronto Real Estate Board, Greater Montreal Real Estate Board, Real Estate Board of Greater Vancouver, Ottawa Real Estate Board and Calgary Real Estate Board.

Lower thresholds used for detached luxury homes: Greater Toronto Area ($3,092,476), Greater Montreal Area ($1,235,266), Greater Vancouver ($4,705,050), Calgary ($1,669,041), and Ottawa ($1,420,331). Lower thresholds used for luxury condominiums: Greater Toronto Area ($1,543,909), Greater Montreal Area ($1,002,778), Greater Vancouver ($1,979,978), Calgary ($875,285), and Ottawa ($890,253).

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of more than 18,000 real estate professionals in more than 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women’s and children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services company, a TSX-listed corporation trading under the symbol TSX:BRE.

For more information visit: royallepage.ca.

^[1] Lower price threshold used is three times the median price for each housing type within the census metropolitan area. For more information on price thresholds, please below section, ‘About the Royal LePage Carriage Trade Luxury Properties Market Release’