Prices of luxury homes continue to skyrocket during pandemic in cities across Canada
While the pandemic has affected many areas of Canada's real estate market, the price of luxury homes is certainly not one of them.
On Tuesday, Royal LePage released its Luxury Property Report which shows that the price of a luxury house and condominium has risen in many regions across the country since the spread of COVID-19.
Nationally, a entry-level luxury house as $2 million and recent increases in Canadian home prices have pushed more and more properties over the national price threshold, meaning there are more luxury properties in the country.
In Toronto, the median price of a luxury house rose 5.4 per cent year after year to $3,187,500 while in the GTA prices rose by 5.9 per cent to $3,177,500.
"The Toronto luxury real estate market has been resilient in the face of the global pandemic," said Cailey Heaps, managing director and sales representative at Royal LePage said in the report.
How has the Canadian luxury real estate market been performing during COVID-19? New data released by Royal LePage shows the luxury real estate trends across Canada. Read more https://t.co/cFFlqrpkvq pic.twitter.com/AW6ZshZyZX— Royal LePage Canada (@Royal_LePage) September 29, 2020
"Demand has been driven by low inventory, low interest rates, and a renewed focus on lifestyle to accommodate for our new normal."
Heaps also added that people buying luxury properties are looking for features like a home office, outdoor space, a pool and walkability.
In Montreal on the other hand, luxury home prices have increased by a staggering 15.9 per cent to $1,975,000, making it the largest gain across all regions Royal LePage surveyed. Houses listed between $1.5 and $3 million are also selling quickly.
"We continue to witness the exodus to the suburbs, new listings in the luxury condominium category are increasing as buyers favour larger outdoor spaces," Marie-Yvonne Paint, real estate broker specializing in luxury listings with Royal LePage Heritage said in the report.
British Columbia, and Vancouver in particular, is also no stranger to expensive home prices. The city of Vancouver itself saw a 3.9 per cent to $4,010,000 increase while the greater region saw a 8.6 per cent increase to $4,180,000.
"The gap between the asking price and selling price is quickly narrowing for homes priced over $5 million but there are still many buying opportunities," added Jason Soprovich, sales representative at Royal LePage Sussex.
Last but not least, Ottawa saw a price increase of 2.9 per cent year-over-year to $1,800,000 since COVID-19 began.
This comes after a study from Moody's Analytics showed that home prices are expected to fall in 2021 following coronavirus.
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