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.
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