Luxury Real Estate Sales Bolstered

Against a backdrop of global turbulence, Canada’s luxury real estate market stood as a bulwark of strength in the first quarter of 2022. While scarce inventory continued to undermine prospective sales, the continued upswell of consumer optimism, economic revitalization, demand for housing mobility, and renewal of urban life bolstered top-tier sales across all major metropolitan areas in the initial months of the year, particularly in the market for condominiums over $1 million, says Sotheby’s International Realty Canada’s ‘Top-Tier Real Estate: Spring 2022 State of Luxury Report.’ In Toronto, ON, and Vancouver, BC, in particular, heated market conditions and evaporating single family and attached home supply have left many potential buyers with condominiums as their best and, in some cases, only option. “This will only fuel additional demand in the months ahead,” says Don Kottick, president and CEO of Sotheby’s International Realty Canada. While major adverse events may instill anxiety in the top-tier market, Canadian real estate is regarded locally and globally as a safe haven in challenging times. As a result, Canada’s luxury market is poised for robust performance through spring, with the most realistic headwinds being the inadequate supply of housing and the potential for demand-side government policy interventions to have unintended negative financial consequences for Canadian homeowners.