Welcome!

News Feed Item

Canadian Real Estate Forecast Predicts Market Stability for Homes Over $1 Million into Fall 2014 for Key Metropolitan Centres

Sotheby's International Realty Canada offers insight into performance of Canada's top-tier real estate markets

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/04/14 -- Following analysis of Canada's largest metropolitan real estate markets and examination of key macro-economic indicators, Sotheby's International Realty Canada is forecasting overall balance in the high-end segment through the fall and into early 2015. Positive momentum is anticipated across several product categories, while the performance of the Greater Toronto Area (GTA) market is expected to outpace that of other urban centres.

As indicated in Sotheby's International Realty Canada's July 2014 Top-Tier Real Estate Report, all major markets experienced year-over-year growth from 2013 in the first half of the year, with sales of homes over $1 million (condominiums, attached and detached single-family) up 34% in Vancouver, 17% in Calgary, 34% in the Greater Toronto Area and 11% in Montreal. Historically low interest rates, positive economic and employment growth and relative political stability are expected to contribute to stable gains through to the end of the year. Fuelled by high consumer demand and low inventory, exceptional market gains are anticipated to continue in the GTA, the only urban centre that experienced growth across every residential product category during the first half of the year.

According to Ross McCredie, President and CEO of Sotheby's International Realty Canada, "With the country experiencing positive economic gains and lending conditions remaining favourable, we expect Canada's high-end housing market to see consistent growth through to early 2015."

National Highlights

--  The Bank of Canada's September 2014 decision to hold the key overnight
    interest rate at 1.00% will have a positive impact on the high-end real
    estate market. The move facilitates consumer borrowing towards
    homeownership, offsets the impact of price gains on affordability and
    underscores a conservative approach to fiscal policy that is attractive
    to foreign investors.
--  With the creation of 42,000 jobs and marginal improvement in the
    unemployment rate to 7% in July 2014, and with Canadian companies
    reporting the strongest profits in nearly three years, Canada's economic
    fundamentals remain strong, leading to levels of consumer confidence
    that are expected to have a positive effect on real estate sales over $1
    million.
--  Consumer demand will continue to outpace available inventory of single-
    family homes over $1 million in major markets. The strongest gains are
    expected in the GTA and Vancouver, with more balanced growth anticipated
    in Calgary and Montreal.
--  The market for condominiums and attached homes over $1 million is
    expected to remain strong in the GTA and Vancouver, as price gains in
    the single-family home market spur consumers to seek alternatives,
    particularly in or near the downtown core. Demand for Calgary and
    Montreal luxury condominiums is expected to remain balanced.
--  In spite of recent and upcoming provincial and municipal elections, the
    political landscape is expected to have nominal impact in Canada's
    largest urban centres this fall, as other market factors are anticipated
    to be more influential.

Vancouver

Heading into fall 2014, Vancouver will continue to experience modest but positive momentum in the sales of homes over $1 million, driven primarily by low interest rates, high consumer confidence and favourable economic conditions. From January 1 to June 30, 2014, sales over $1 million increased to 1,664 units for condominiums, attached and detached single-family homes combined, 34% more than the units sold in the first six months of 2013. With the greatest gains experienced in single-family home sales, up 38% to 1,317 units sold in the first half of the year, this category is expected to lead the high-end market to the end of the year. Additionally, over the summer months, a significant increase in $1 million home sales was seen in the attached homes category, a trend that is expected to continue into the fall as low inventory in the single-family market creates demand for alternatives.

Calgary

After leading Canada's high-end real estate market in nearly every category in 2013 and 2014, Calgary's market is expected to balance in the final quarter of 2014. Through the first half of 2014, Calgary's $1 million plus real estate market posted a 17% increase in home sales over $1 million compared to the same period in 2013. Low inventory in the beginning of the year drove bidding wars and price increases in a market that favoured sellers. Over the summer months, new inventory over $1 million emerged to meet strong consumer demand, particularly in the condominium market, a trend which is expected to continue into the fall. At the same time, Calgary's robust economy is expected to sustain demand for luxury real estate, and notable growth is expected in the $4 million single-family home market throughout the fall and into 2015 as this category has already outpaced 2013 sales numbers.

Toronto (GTA)

Following a 34% year-over-year increase in homes sales above $1 million in the first six months of 2014, the Greater Toronto Area (Durham, Halton, Peel, Toronto and York) is expected to lead Canada's high-end real estate in every category: single-family homes, attached homes and condominiums. Throughout the summer, Toronto experienced record-setting sales with July numbers representing one of the strongest months of the year. The $2 million plus price range performed exceptionally well, with a greater number of homes sold over $2 million than within the $1.5-$1.75 million range. The market is expected to favour sellers into fall 2014, driven by lack of inventory and strong consumer demand for single-family homes. In turn, this is expected to impact condominiums, as buyers priced out of the attached and single-family home market look for alternatives, and migration and immigration into the urban core continues. Demand is expected to remain consistent despite the upcoming municipal election.

Montreal

Balance is anticipated for Montreal's high-end real estate market in fall 2014 due to the city's recent return to political and economic stability following the spring election of a Liberal majority government. Subsequent consumer confidence in the real estate market and economy prompted increased market activity in the million dollar-plus real estate segment in the spring and into the summer. In the first half of 2014, Montreal properties (condominiums, attached homes and detached single-family homes) over $1 million increased by 11% year over year with 228 homes sold. The high-end market is expected to remain consistent in terms of both sales volume and selling prices in the fall, with the majority of sales anticipated in the $1-2 million single-family market.

To download the full report on Canada's luxury real estate market performance for the first half of 2014, please visit: http://sothebysrealty.ca/blog/en/2014/07/07/2014-mid-year-top-tier-real-estate-report/

For more information and details on Sotheby's International Realty Canada visit www.sothebysrealty.ca.

About Sotheby's International Realty Canada

Combining the world's most prestigious real estate brand with local market knowledge and specialized marketing expertise, Sotheby's International Realty Canada is the leading real estate sales and marketing company for the country's most exceptional properties. With offices in over 25 residential and resort markets nationwide, our professional associates provide the highest caliber of real estate service, unrivaled local and international marketing solutions and a global affiliate sales network of approximately 600 offices in more than 45 countries to manage the real estate portfolios of discerning clients from around the world.

Disclaimer

(i)The information contained in this report references market data from MLS boards across Canada. Sotheby's International Realty Canada cautions that MLS market data can be useful in establishing trends over time, but does not indicate actual prices in widely divergent neighborhoods or account for price differentials within local markets. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Sotheby's International Realty Canada or Sotheby's International Realty.

Contacts:
Katie Stevens
778.686.0906
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
"Storpool does only block-level storage so we do one thing extremely well. The growth in data is what drives the move to software-defined technologies in general and software-defined storage," explained Boyan Ivanov, CEO and co-founder at StorPool, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Is advanced scheduling in Kubernetes achievable?Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, answered these questions and demonstrated techniques for implementing advanced scheduling. For example, using spot instances and co...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.