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
katies@talkshopmedia.com

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
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
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...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...