Luxury home sales slip in Vancouver, pick up in Toronto: Sotheby’s

VANCOUVER (NEWS 1130) – Toronto has taken over top spot when it comes to luxury real estate sales in Canada, widening its lead over Vancouver. But new numbers from Sotheby’s International Realty Canada show it’s not exactly clear whether or not the newly implemented 15 per cent foreign buyers tax is behind the shift.

The agency says summer sales shot up 83 per cent in Toronto compared to last year, while sales of single-family homes over $1 million in Metro Vancouver fell 30 per cent in July compared with a year ago when it was 193. In August, sales were down 65 per cent compared with a year ago, falling to 95.

But Managing Broker Polly Cordwell says the market was already slowing even before the introduction of the levy, so it’s hard to tell its effects. “I think it has had some impact [but] the fall market, which we’re coming into now, will really be more indicative of what’s happening for the rest of the year.”

However, with the market fundamentals still strong in Metro Vancouver. “We’re not expecting the market to just completely crash or have any major changes to it.”

In other words — the market is moderating to more normal levels but sales are expected to stay strong and affordability is still a concern.
Vancouver condominium sales over $1 million in July totalled 93 — up 29 per cent from a year ago — but sales in August fell 49 per cent compared with the same month last year, dropping to 40.

“Honestly at the entry-point it’s still quite active. Stuff around $400,000, that is still quite active in actually seeing multiple offers and I believe that’s with a lot of the first-time buyers,” explains realtor Steve Saretsky.

He analyzed September’s sales numbers so far and says, overall, the condo market is cooling in Metro Vancouver. His advice to anyone buying right now is there’s no reason to leap into a deal too quickly, simple take your time and do your research.

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