According to a RE/MAX report released yesterday, improved financial standing among the wealthy is the major factor driving strong sales activity at the top end of Canadian housing markets, with the highest figures being recorded in Metro Vancouver.
The report focused on 12 major centres from coast to coast and found luxury home sales have surged in close to two-thirds of housing markets between January 1 and April 30 of this year, compared with the same period in 2010.
With foreign investment playing a major role, Greater Vancouver led the way with a 118% increase in sales, from 343 upper-end homes in January to April of 2010, up from 747 in the same period of 2011.
Elton Ash, regional executive vice-president of RE/MAX of Western Canada, said, “The strength of the upper-end segment continues to defy expectations.
“That demand remains largely domestic speaks to the solid underpinnings of the market, while underscoring the appeal of Canadian real estate on an international stage. Western Canada, in particular, will continue to see the upside benefit of investment from abroad.”
While foreign investment has augmented sales in several Canadian markets, its influence was significant only in Greater Vancouver.
The report noted that a number of factors position Canada as an attractive option. Foremost among those factors: its real estate remains a bargain by international standards, given its ranking for quality of life, political and economic stability and the strength of its property laws.
Limited inventory levels in Canada’s largest markets have slowed sales somewhat in 2011, given that demand exceeds available supply.
Multiple offers are occurring in Greater Vancouver as buyers compete for quality product in prime neighbourhoods.
Jennifer Harrison