Two years ago the international luxury homes market was tepid but 2017 put some heat back into the sector with Canada leading the way.
A newly-released global report from Christies International Real Estate says that the market bounced back in 2017 with a growth rate of 11%, the best for three years.
This confidence among wealthy buyers was driven by low interest rates, a robust stock market, and stable global economic growth.
Among the hottest primary markets, it was Victoria, BC that was the front-runner, beating out competition from San Diego, Orange County (CA), Washington DC, and Paris, France.
Global sales of U$1m+ homes in primary markets gained 10% in 2017. Hong Kong led this market, with two sales of homes over $100m including a record-breaking $360m home!
The top 10 was completed by New York, London, Singapore, San Francisco, Los Angeles, Sydney, Paris, and …. Canada’s two hot markets Toronto and Vancouver.
For hot secondary markets, Ontario’s Muskoka was second only to Sante Fe, New Mexico; and beating markets in Florida, Idaho, and the entire Bahamas!
Luxury market constrained but a good investment
Tight inventory is a global issue among the luxury housing market, the report says. It also calls out governments for doing little to solve the issue.
However, overall it concludes that demand for luxury homes is strong as investors opt for real estate assets amid equity market volatility.
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