C
anada's luxury real estate market maintained a steady level of sales activity in the third quarter of 2024 despite a slowing economy and geopolitical tensions eroding consumer confidence. Declining mortgage rates and population gains supported the housing market, with single-family home demand dominating the high-end market. Luxury condominium sales slackened in Toronto and Vancouver, resulting in excess listings inventory, price drops, and favorable terms for buyers.
In the Greater Toronto Area (GTA), overall residential real estate sales over $4 million remained consistent year-over-year between July 1-August 31, with a nominal uptick of 3%. Luxury single-family home sales over $4 million saw a modest 4% annual improvement, while condominium sales fell 25% from last summer's levels. GTA residential sales over $1 million were down 11% year-over-year.
Vancouver's luxury real estate market remained soft in the third quarter, with sales over $4 million falling 13% in July and August from last summer's levels. Luxury single-family home sales over $4 million declined 16% year-over-year to 42 sales between July 1-August 31. The City of Vancouver reported 12 luxury sales over $4 million between September 1-30, down 52% from 25 properties sold during the same period last year.
Calgary continued to post stand-out luxury market performance and sellers' market conditions as record inter-provincial migration and immigration lifted $1 million-plus residential sales by 31% year-over-year in July and August compared to the summer months of 2023. The city's strong population gains and economic fundamentals drove a gradual shift towards an active but more balanced market.
Montreal's luxury real estate market continued to gain traction in the third quarter, building on its momentum from the first half of 2024. The city finished the summer with the total number of residential real estate sales over $1 million up 15% year-over-year to 266 properties sold between July 1-August 31.
According to Sotheby's International Realty Canada experts, current conditions for luxury real estate buyers in Vancouver and Toronto are the most favorable since 2017. Excess supply and reduced competition enable prospective homeowners and investors to successfully secure properties at more attractive prices. The cumulative effect of multiple interest rate cuts by the Bank of Canada over 2024 finally spurred pre-transactional and sales activity across the conventional and entry-level top-tier real estate market towards the end of the third quarter.
The luxury condominium market in Vancouver shifted further in favor of buyers, with an abundance of supply, reserved consumer demand, and downward pressure on prices. Toronto's luxury condominium market also skewed in favor of buyers, with a single sale taking place over $4 million between September 1-30 this year, and no transactions over $10 million on MLS.
Sotheby's International Realty Canada experts predict that local demand for upward housing mobility will foster an active luxury single-family and attached home market in Toronto this fall. While balanced conditions and price stability will prevail for these housing types within the City of Toronto, an abundance of supply outside the city will tilt key regions in favor of buyers.
The GTA's conventional and luxury condominium market, which remains over-saturated with supply, will see price declines and favorable opportunities for invest-minded buyers across the board. Market experts emphasize that Toronto remains Canada's primary destination for immigration and net migration, ensuring long-term demand for condominiums and residential housing amidst ongoing population growth.
