S
otheby's International Realty Canada Toronto spearheaded the Canadian luxury market's resurgence in 2024, as Calgary set new records and Montreal sales climbed despite Vancouver's slowdown. Key highlights from 2024 include a 21% year-over-year increase in GTA luxury sales over $4 million, setting the tone for broader national trends.

    Calgary's luxury market expansion outpaced other major Canadian cities, driven by economic confidence and record interprovincial migration. Residential sales over $1 million and $4 million surged 42% and 100%, respectively. Montreal's luxury market posted annual gains of 38% in residential sales over $1 million and 16% for sales over $4 million.

    Vancouver's luxury market lagged, with buyers' market conditions taking hold and $4 million-plus residential sales closing the year 11% below 2023 levels. However, Toronto and Vancouver saw modest annual gains of 31% and 26%, respectively, in sales over $4 million.

    The loosening of monetary policy by Canada's central bank has had a trickle-up effect, stimulating activity from conventional to luxury markets. Despite political volatility, Canada's luxury real estate market remains primed for favourable buying opportunities in early 2025, with surging population growth, tempered interest rates, and stabilizing home prices supporting new activity.

    According to Sotheby's International Realty Canada's Top-Tier Real Estate: 2024 State of Luxury Annual Report, unprecedented population growth was the leading transformative influence on conventional and luxury market activity. The influx of over 471,771 new permanent residents in 2023 and a targeted 485,000 in 2024 intensified demand for housing across major cities.

    The Bank of Canada's monetary policy easing also influenced luxury market performance, improving consumer confidence and enabling upward mobility from conventional markets into the entry-level top-tier segment. Home sales activity recorded over MLS systems climbed 7.7% month-over-month in October 2024, its highest level since April 2022, followed by another 2.8% increase in November.

    The central bank's policy rate cut of 50 basis points to 3.25% in December 2024 will continue to facilitate new activity in 2025, positioning the luxury real estate market for favourable buying opportunities amidst surging population growth and stabilizing home prices.