Sales for Vancouver homes priced at $1 million or more soared in the first half of 2014 and are expected to “gain momentum” in the second half of the year, according to a report that Sotheby’s International Realty Canada released late July 7.
The high-end brokerage counted 1,664 home sales in Vancouver that, during the first six months of the year, transacted for more than $1 million. That’s 34% more than the same time last year.
Unlike Toronto, which also saw a Canada-leading 34% increase for $1 million-plus home sales, Vancouver’s growth in high-end home sales was entirely due to increases in sales for $1-million-plus condominiums and detached homes.
Sales for Vancouver duplexes, row-houses and other attached homes priced at more than $1 million fell by two homes, or about 2%, to 104, according to Sotheby’s.
Condominiums sales that surpassed the $1 million threshold were up 37% to 243 and attached home sales in that price range were up 38% to 1,317.
The numbers did not surprise British Columbia Real Estate Association economist Cameron Muir.
“You know who’s putting this out, right?” he asked with a chuckle. “A company that specializes in expensive homes.”
Muir believes that more homes in Vancouver are selling for more than $1 million simply because of inflation and the fact that overall sales are rising.
The biggest increase in all of the luxury home categories was for detached homes that sold for more than $4 million. There were 118 such home sales in the first six months of 2014, or 51% more than the 78, which sold a year ago.
Muir said this could be expected because detached homes are increasingly forming a smaller part of the overall housing market. More condominiums are being built as the city densifies, thereby making single-family homes more precious – particularly the category of detached homes that are high-end, he said.
The number of Vancouver detached homes that sold for between $2 million and $4 million rose 39% to 485 while detached homes that were priced between $1 million and $2 million were up 35% to 714.
Condominium sales priced at more than $4 million rose 29% to nine whereas those units priced at between $2 million and $4 million were up 2.5% to 41 and condominiums priced at between $1 million and $2 million were up 47% to 193.
“Given strong economic fundamentals, increased consumer confidence
and mortgage lending rates that remain at historical lows, all markets
are expected to gain momentum in the latter part of 2014,” the report noted.
“International demand is also expected to remain strong across Canada’s major metropolitan markets, with the removal of Canada’s Immigrant Investor Program having had no impact on the luxury real estate market year-to-date.”
Earlier this year, B.C. Assessment listed Lululemon Athletica Inc. founder Chip Wilson’s home on Point Grey Road as the most expensive residential property in B.C.
That home was assessed at $54.2 million.
