Luxury real estate sales up 171% last year in Vancouver, sales of $10M+ homes up even more
Sellers of luxury real estate did well last year, data on the Vancouver market suggests. Sales of properties with price tags higher than $4 million were up a whopping 171 per cent year-over-year.
Data released by Sotheby's International Realty earlier this week included that 410 such properties were sold in the area in 2021. That total includes condos, attached homes and single-family homes.
It's a trend that wasn't limited to Vancouver, too.
Records fell in most of Canada's major metropolitan luxury markets, something Sotheby's attributes to buyers' "urgent, pandemic-influenced demand for housing mobility," as well as strengthened confidence in Canada's post-pandemic economic recovery.
As in non-luxury markets, demand quickly outpaced supply. Prices went up, inventory "eroded," and markets reached historic highs, Sotheby's report explains simply.
"Canada's real estate market was redefined in 2021," Sotheby's said.
The luxury market benefitted from a change in priorities – with more people working from home, buyers were less concerned about their commutes, and more concerned about space and security.
Low interest rates and record savings also didn't hurt, and Sotheby's noted seeing underlying anxiety from buyers concerned about investments made elsewhere, like on the stock market.
In Vancouver, that translated to the increase mentioned above for all luxury properties.
Sales jumped even more from 2020 to 2021 when looking at the ultra-luxury listings. Twenty-four properties priced over $10 million were sold last year, up 218 per cent from just 11 sold the year before.
The report does not address the buyers of homes at this price range, so it's unclear whether they were purchased by residents already living locally, and whether they were purchased by people intending to live there full time.
A report released last week from the Bank of Canada suggested a significant share of newer homes, at least, were purchased by repeat buyers and investors.
Of course it's unlikely many first-time buyers are looking at luxury real estate, but the report found that as home sales grew and prices skyrocketed – a trend realtor groups often tied to local buyers looking for more space during the pandemic – it was purchases by investors that grew the most.
The Bank of Canada study looked only at mortgage data, however, so it does not capture homes bought with cash or by corporations.
Looking at lower-priced (relatively) homes, Sotheby's said broadening the scope to include all properties sold for prices higher than $1 million still shows an increase in 2021, compared to 2020. But sales were up 145 per cent, compared to in the higher-priced categories.
Sotheby's said 5,794 homes in this category were sold last year.
The category that saw the steepest growth was specifically single-family homes priced higher than $10 million. Those sales were up 240 per cent, compared to the previous year's.
Other markets saw steep growth when it came to the sale of luxury real estate last year, including in Toronto where sales of properties over $4 million was up 224 per cent from in 2020, and ultra-luxury property sales were up 238 per cent.
Calgary saw the greatest growth in sales over $1 million, which were up 222 per cent, and in Montreal, real estate listed at over $4 million was up 178 per cent from 2020.
CTVNews.ca Top Stories
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
'It was joy': Trapped B.C. orca calf eats seal meat, putting rescue on hold
A rescue operation for an orca calf trapped in a remote tidal lagoon off Vancouver Island has been put on hold after it started eating seal meat thrown in the water for what is believed to be the first time.
Man sets self on fire outside New York court where Trump trial underway
A man set himself on fire on Friday outside the New York courthouse where Donald Trump's historic hush-money trial was taking place as jury selection wrapped up, but officials said he did not appear to have been targeting Trump.
Sask. father found guilty of withholding daughter to prevent her from getting COVID-19 vaccine
Michael Gordon Jackson, a Saskatchewan man accused of abducting his daughter to prevent her from getting a COVID-19 vaccine, has been found guilty for contravention of a custody order.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
B.C. judge orders shared dog custody for exes who both 'clearly love Stella'
In a first-of-its-kind ruling, a B.C. judge has awarded a former couple joint custody of their dog.
Saskatoon police to search landfill for remains of woman missing since 2020
Saskatoon police say they will begin searching the city’s landfill for the remains of Mackenzie Lee Trottier, who has been missing for more than three years.
Shivering for health: The myths and truths of ice baths explained
In a climate of social media-endorsed wellness rituals, plunging into cold water has promised to aid muscle recovery, enhance mental health and support immune system function. But the evidence of such benefits sits on thin ice, according to researchers.