According to the latest report issued by Sotheby's International Realty Canada, a overall balance is expected to be seen in high-end real estate this fall. This trend is predicted to continue into at least the early part of 2015. In the July 2014 Top-Tier Real Estate Report, it shows that positive momentum should be expected in urban centres across the country but the Greater Toronto Area is expected to outshine them all.
Lending conditions continue to remain favourable in Canada while at the same time the country is experiencing economic gains that are positive. All of the major markets saw a sales growth on a year-over-year basis for luxury homes. In the Greater Toronto Area and in Vancouver there was a 34% increase, in Calgary it was 17%, and in Montréal there was a rise of 11%.
In Calgary, the market should become balanced during the last quarter of 2014. During the first six months of this year, there was low inventory and this caused bidding wars, which helped to drive up the prices. It was a seller's market, even as new inventory was continually added during the summer. The consumer demand for luxury homes in Calgary, especially in the condominium sector, remained high.
The robust economy in Calgary should be able to sustain the demand for high-end homes that are worth more than $1 million. As well, as we head into the fall and the start of 2015, this city should expect to see notable sales growth in the $4 million luxury single-family sector. So far this year, this category has been outpacing the sales numbers recorded back in 2013 for the same time period.