The Vancouver real estate market saw significant changes last year, but the demand for luxury homes remained relatively balanced.
Sotheby’s International Realty Canada has released a new report on trends in the luxury real estate market across Canada, and Vancouver saw some interesting developments throughout 2023.
One thing is certain: there is still a ton of demand for luxury real estate in Vancouver — despite troubling trends for less affluent folks looking to purchase a more modest home.
For wealthy folks who can afford luxury homes, the phrase “in this economy?” doesn’t seem to apply.
Sotheby’s says that the Vancouver luxury real estate market underwent a “dramatic transformation” in 2023, with single-family homes becoming a “focal point” for luxury buyers.
“Despite fluctuating consumer sentiment over the course of the year, residential sales transactions over $4 million closed the year 8% above 2022 levels,” Sotheby’s report states.
One piece of analysis that may sting for folks who will never, ever, ever, (ever) be able to purchase a home is how much the sales of homes worth over $10 million increased in 2023.
“Sales over $10 million saw a significant 43% annual increase, buoyed by an uptick in
ultra-luxury transactions in the third quarter of the year.”
Ultra-luxury homes are also known as trophy homes. Vancouver saw sales of those trophy homes increase last year as well.
“Ultra-luxury single-family home sales over $10 million on Multiple Listings Service (MLS)
increased 36%. Overall, in 2023, residential real estate sales over $1 million fell 5% short of 2022 levels.”
The report suggests favourable conditions this year for cash-only or cash-dominant buyers.
Don Kottick, president and CEO of Sotheby’s International Realty Canada, suggests preferences are changing nationwide.
“Market conditions have momentarily shifted the lifestyle and investment preferences
of every generation of luxury homebuyer in favour of single-family homes across Canada’s largest urban markets,” states the report.
From January to December of last year the income required to purchase the average Vancouver home increased by $24,600. In January 2023, the needed income was $212,800; by December, it was $237,400.
Ratehub unsurprisingly calls Vancouver the most challenging market.
“In December 2023, the average prices for home types in Vancouver were as follows: Detached homes: $1,964,400 (+7.7% on an annual basis, -0.9% from November 2023) Apartment homes: $751,300 (+5.6% on an annual basis, -1.5% from November 2023),” Ratehub states.
For the average income earner, this report likely won’t leave your soul any less crushed.
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