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
Vulnerability management is vital for large companies that need to secure containers across thousands of hosts, but many struggle to understand how exposed they are when they discover a new high security vulnerability. In his session at 21st Cloud Expo, John Morello, CTO of Twistlock, addressed this pressing concern by introducing the concept of the “Vulnerability Risk Tree API,” which brings all the data together in a simple REST endpoint, allowing companies to easily grasp the severity of the ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...