High-end homes sales rise in Toronto, Vancouver, fall in Calgary in 2015

Listing price:

High-end homes sales rise in Toronto, Vancouver, fall in Calgary in 2015

 

ALEXANDRA POSADZKI

 

TORONTO — The Canadian Press

 

Last updated Thursday, Jan. 07, 2016 10:32AM EST

 

Sales of homes worth $1-million or more heated up in Toronto and Vancouver last year as the low loonie fuelled demand from foreign buyers, a new report released Thursday says.

 

The report from Sotheby’s International Realty Canada says 11,112 homes worth $1-million or more were sold in the Greater Toronto Area last year – an increase of 48 per cent over 2014.

 

Detached homes pace Toronto real estate to record year (BNN Video)

 

In Vancouver, 4,578 homes over the $1-million mark were sold in 2015, up 46 per cent from the previous year.

 

The realtor says sales of homes worth more than $4-million grew the most – in Vancouver by 67 per cent, and in Toronto by 71 per cent.

 

But after years of growth, Calgary’s high-end housing market declined last year as the downturn in the oil patch hurt consumer confidence.

 

The Sotheby’s report says sales of homes over $1-million fell 41 per cent in Alberta’s largest city in 2015 compared with the previous year.

 

Elaine Hung, vice-president of marketing for Sotheby’s International Realty Canada, said low interest rates, high levels of immigration and a limited supply of homes heated up the high-end housing markets in Toronto and Vancouver.

 

“We had a lot of buyers who were very eager to enter the market, and they were bidding on a limited number of homes, particularly in premier neighbourhoods,” said Hung.

 

In many instances, that resulted in bidding wars, she said.

 

The luxury segment – comprised of homes worth $4-million or more – benefited from all of those factors, as well as weakness in the Canadian dollar.

 

“We did see increased interest from international buyers, so that was definitely a factor,” said Hung, referring to the $4-million-plus segment in Toronto and Vancouver.

 

In Montreal, sales of homes worth over $1-million grew by 15 per cent from a year ago.

 

Looking ahead to 2016, Hung predicts more of the same – continued sales growth in Toronto and Vancouver, a further slowdown in Calgary and a balanced market in Montreal.