Sales of homes in the $1-2 million price range are the focus of a new report from RE/MAX.

It found that sales of luxury condos have increased in 2018 compared to 2017, especially in Canada’s large urban areas.

In Toronto there was a 2% rise in luxury condo sales while Vancouver posted a 6% gain, and sales in Victoria surged 19%.  These increases have been driven mostly by Baby Boomers downsizing and Millennials investing in the more-affordable condo market.

“Many Canadian Baby Boomers saw the strength of the real estate market over the past two years as an opportunity to cash-in, downsize and upgrade into the luxury market for retirement,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region.

Meanwhile, sales of luxury single-detached homes have declined with those in the $1-3 million range declining 37% in Toronto and 31% in Vancouver.

Foreign buyers give way to locals
The foreign buyers tax continues to impact this property segment with local buyers dominating.

For homes priced at $3 million and above, the decline in sales in Toronto and Vancouver is even steeper – 44% and 45% respectively. Sales of condos in this price range were unchanged in Toronto but declined 13% in Vancouver.

Victoria saw a 67% surge in sales of condos in the $2-3 million range but a decline of 40% in those over $3 million.

 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


More market watch: