Canada’s luxury real estate market has remained stable in 2024, but smaller cities like Winnipeg have taken the spotlight with significant growth. Winnipeg has seen a remarkable 61.9% year-over-year increase in luxury home sales for the first eight months of the year, making it one of the strongest-performing luxury markets in the country.
This sharp growth contrasts with larger cities like Toronto and Vancouver, which posted more modest changes. Luxury property prices in Toronto rose by just 3.9%, while Vancouver and Montreal recorded slight declines of 1.8% and 2.8%, respectively. These trends highlight the growing interest in smaller, more affordable cities where luxury buyers are driving up sales.
Prairie Provinces See Surge in Luxury Sales
In addition to Winnipeg, other cities in the Prairie provinces, including Edmonton and Calgary, have also reported significant growth in luxury home sales. This surge in activity is driven by continued demand from out-of-province buyers, a trend that has helped these regions remain resilient over the past year. Alberta, in particular, has benefitted from this migration, with Calgary and Edmonton becoming attractive destinations for luxury homebuyers across Canada.
The Slow Pace of Luxury Sales in Larger Markets
Larger markets, such as Toronto and Vancouver, have experienced slower growth in luxury sales. Homes at the high end of the market typically trade hands at a slower pace as the pool of potential purchasers narrows, and prices for these properties climb.
Luxury buyers tend to be less affected by economic factors, such as high interest rates, compared to the broader market. Many high-end properties are purchased with substantial down payments or even fully in cash, helping insulate the luxury market from broader economic concerns.
Consumer Confidence Drives the Luxury Market
Consumer confidence plays a significant role in the resilience of Canada’s luxury real estate market. Many luxury buyers remain optimistic about the long-term stability of the housing market and are willing to invest in high-end properties, whether they are fully renovated homes or custom builds. These buyers prioritize quality, location, and long-term appreciation potential when making their purchasing decisions.
Foreign Buyer Ban Has Minimal Impact
The federal foreign buyer ban, implemented in 2023 and extended until 2027, has had little impact on Canada’s luxury real estate market. While intended to curb demand from international investors, the ban has not significantly affected prices or inventory levels, as the vast majority of luxury homebuyers in Canada are domestic.
As the luxury real estate market continues to evolve in 2024, smaller cities like Winnipeg are showing the strongest signs of growth, while larger markets remain stable but less dynamic. The resilience of the luxury market is a testament to the unique factors that drive high-end home sales, including buyer confidence, economic insulation, and demand for quality properties in desirable locations.
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