A global luxury property firm has predicted that homes in Canada worth $1 million and above will see their prices grow by around 4% in 2020, largely due to sustained demand and last year’s housing market robustness.
In its newly released “Canadian Year-End Luxury Real Estate Report,” Engel & Völkers noted that the combination of a larger population and an unusually strong labour market will serve as a durable foundation for the top-tier property market this year.
“Despite the modest growth of 1% year-over-year in 2019, Canada had a record population growth of 560,000 nationally, and a current unemployment rate of 5.2% – the lowest level in more than 15 years,” Engel & Völkers stated.
In particular, Montreal and Ottawa will be the most active seller’s markets in the luxury segment, boasting of desirable jobs markets, dynamic economies, and strong demand for high-end condos. Toronto will also be among the nation’s most vigorous top-tier property scenes.
Meanwhile, Whistler and Vancouver have both transformed from seller’s to balanced markets, largely due to slowdown over the early part of 2019. The latter, especially, has become a less certain luxury purchase and investment destination, amid global geopolitical and economic uncertainty.
Still, despite these potential speed bumps, “the overall residential real estate market in Canada remains strong and indicators for 2020 point toward continued growth and, in some areas welcomed stability,” Engel & Völkers Americas president and CEO Anthony Hitt said.
by Ephraim Vecina Mortgage Broker News.ca