Luxury home market still a bright spot

Top-tier residential properties recorded substantial sales growth over the first two months of the year, particularly in the Greater Toronto Area (GTA), Vancouver, and Montreal, according to the latest market update from Sotheby's International Realty Canada.

In GTA, residential sales of over $1m grew by 107% over the past two months. At the same time, sales of properties of over $4m surged 75%.

GTA reported gains across housing types despite the limited inventory. Condominiums registered the highest jump in sales at 117%, followed by single-family homes at 115%. Sales of attached homes also grew, up by 52%.

Also read: Luxury house prices slated to grow

Vancouver's luxury home market managed to rebound in January and February, reporting an 80% increase in sales of homes with values of over $1m.

In Montreal, luxury home sales of over $1m rose by 68% in the first two months of 2020.

Don Kottick, CEO of Sotheby's International Realty Canada, said the shortage of listings and the robust demand in Toronto, Vancouver, and Montreal will help boost the resiliency of these markets in the months ahead.

"Furthermore, historically favourable mortgage lending conditions and extreme stock market volatility make Canadian real estate a desirable and secure investment. While uncertainty lies ahead, housing will remain essential, activity will continue and the long-term prospects for Canadian real estate are solid," Kottick said.