Montreal and Calgary are on track to eclipse Vancouver and Toronto as fastest growing luxury real estate market in Canada this year as rise in confidence of consumer boosts up demand for homes more than $1 million.
According to new report by Sotheby on luxury sector, home sales of around $1 million or more than that in Montreal have increased by 20% to 104 units in first 2 months of this year, as transactions in Vancouver and Toronto have flagged the amid headwinds from policy interventions by government.
Brad Henderson, Chief Executive and President of Sotheby’s International Realty Canada said that Montreal is the ‘dark horse’ in luxury real estate market of Canada.
“For number of years, a stagnant economy and political uncertainty tethered performance. During this spring, they expect a very strong gain which will set some of the new records for Montreal”.
An uptick in the luxury home sales is too expected in Calgary as growth in gross domestic product of province exceeds to an expectations and an increase in manufacturing exports, oil prices and flow of population improves confidence of consumer.
A Little Book of Real Estate Investing in Canada is also available which helps to guide before investing in Canada. Home sale of real estate priced more than $1 million rose by 45% to 94 units in January and February as compared to same period of time a year ago.
Meantime, luxury real estate markets in two largest metropolitan areas of Canada posted a huge significant decline as a series of new real estate market and cooling measures took into an effect.
During last April, Ontario government introduced a huge package of some measures that include 15% foreign buyer tax and rent controls. And in January, Office of Superintendent of Financial Institutions tightened up the qualification rules for some of the uninsured mortgages.
In Greater Toronto, sales of properties cost more than $1 million got tumbled by% to around 1,498 units, and 56% to around 31 units for $4-million homes in January & February. Sotheby’s said that home sales of Toronto condos worth more than $1 million were down by 10% in the very first 2 months of the year.
In Vancouver, home sales of single family home in luxury real estate market in Canada worth is more than $1 million fell down by 39% to 193 units in first 2 months of the year, even as condominium boom continued in the city. There are some points which tell that What, When, Where and How to Buy Real Estate in Canada.
Henderson said that first quarter of year 2017 in Toronto was an active and abnormally high real estate market to compare this to an unfair benchmark. Henderson also added that present economic fundamentals in Toronto, like consumer confidence and employment, remain very strong.