Sales of Vancouver homes priced over $1 million surged in the first half of 2015, according to Sotheby’s International Realty.
The city saw 2,465 homes – including condos, attached and single family units – sell for $1 million or more in the first six months of the year, representing a jump of 48% compared with the same period last year.
Sotheby’s defines homes with sale prices over $1 million as “luxury homes.” However, in Vancouver’s high-priced market, $1 million is less than the $1.04 million benchmark price for detached homes in East Vancouver, according to the Real Estate Board of Greater Vancouver. On Vancouver’s prestigious west side, this benchmark jumps to $2.4 million.
Vancouver was not the only Canadian city with an increase in the sale of high-priced homes. In the Greater Toronto Area (GTA), 7,527 units sold at prices over the seven-figure threshold, which was an increase of 38%.
“Luxury real estate in both the GTA and Vancouver had benchmark-setting starts to 2015,” said Ross McCredie, president and CEO of Sotheby’s. “Both cities face growing domestic and international demand for top-tier housing, along with inventory shortages in prime neighbourhoods, particularly for single family homes.
“These two cities are set to lead Canadian luxury residential real estate in the coming months.”
Montreal also had a small increase – 20% – in the number of homes that sold for more than $1 million, and Sotheby’s said this trend will remain stable for the remainder of the year.
Calgary, on the other hand, saw a drop of 36% – the first decrease after several years of growth.
“The strongest indicators for the Calgary market will be revealed in the fall, when employment numbers, interest rates and the Alberta provincial budget are announced,” McCredie said.
Most of Vancouver’s $1 million-plus sales were single-family homes, with 1,921 units sold – up 46% compared with last year – but the greatest gains were seen on other home types.
“Sales of attached homes over $1 million in Vancouver saw a significant increase in the first half of 2015 with 118% growth compared with the same period in 2014, as buyers priced out of the single family home market sought alternatives,” Sotheby’s said in a news release.
“In the first half of 2015, the sales volume of condominiums over $1 million increased by 30% to 317 units.”
Huge gains were also seen in the $4 million-plus category, which saw a 71% jump to 219 units between January and June.
