The number of luxury homes sold for at least $4 million in Vancouver skyrocketed last year, according to a new report by Sotheby’s International Realty Canada.
“In light of the unexpected and unrelenting changes that rippled across the housing industry in 2016, the top-tier real estate markets in Vancouver… demonstrated tremendous resilience, and in many cases sheer defiance, to post healthy performance across the board,” said President and CEO Brad Henderson.
According to a release by the luxury real estate sales and marketing company, real estate sales of more than $4 million in the city were up 36% to 573 units.
However, while multi-millionaires may still be finding real estate to suit their tastes, the report suggests mere millionaires in Vancouver are not so impressed.
Sotheby’s found Vancouver’s home sales over $1 million slowed down in the second half of 2016, leading to a year-on-year drop of 1%. Million-dollar single family home sales fell 16%.
The report attributes this slowdown to the 15% foreign buyer’s tax imposed in Metro Vancouver, as well as federal changes to rules governing mortgages and foreign ownership.
Elsewhere, in Toronto, the number of luxury homes sold for at least $1 million last year broke all previous records, Sotheby’s found.
Sotheby’s says $1 million-plus sales in the GTA in 2016 surged 77% year-over-year, while luxury sales over $4 million rose a whopping 95% over 2015 figures.
“Toronto’s luxury real estate market shattered previous performance records for the second straight year and defied industry expectations,” said Henderson.
The report also found luxury home sales in Calgary and Montreal to be in good shape, with sales over $1 million rising 19% in Calgary and 23% in Montreal.
Nevertheless, the Greater Toronto Area has raced ahead of Vancouver, Calgary and Montreal over the past two years, found Sotheby’s.
The Sotheby’s report is based on market data from MLS boards across Canada, which the luxury real estate company says can help to establish trends over time.
However, Sotheby’s says the data “does not indicate actual prices in widely divergent neighbourhoods or account for price differentials within local markets.”