The strength of Canada’s housing market continues to surprise experts but given that the country is so vast, it is logical that the strength is not consistent coast to coast to coast. Many Canadians can acquire affordable homes thanks to near record low mortgage rates that are being aggressively advertised by banks and lenders in a quiet ‘mortgage rate war.’
But one area of the market that is surprisingly booming is the luxury real estate sector. This segment of the market is for high rollers as the minimum value for homes in this market are set at $1 million.
Seven figure properties are typically up for grabs in major cities, as well as in areas designated for vacations. In terms of the urban market, Canada’s four strongest cities reported year over year gains in the number of homes sold that are worth more than $1 million.
Over 6,400 million plus valued homes sold across Canada in the first half of 2014, with nearly 4,000 of those properties sold in the GTA alone. Toronto was unique among Canada’s four priciest cities in recording annual gains of single detached houses, semidetached bungalows, and high rise condos valued at a minimum of $1 million.
Seven figure home sales were also on the rise along the west coast. Vancouver reported annual gains in million plus valued homes, and was also host of Canada’s most expensive home sale that was valued at over $15 million.
Luxury home sales were also on the rise in Calgary, Canada’s fastest growing market and Montreal. The seven figure sales in Montreal are particularly remarkable as total sales in Quebec’s largest city actually declined in the first half of 2014 – suggesting the wealthiest in Montreal are fueling property demand in the city.
The rising number of sold seven figure homes likely played a part in raising the national average home price across the country. The Canadian Real Estate Association says the average Canadian home price now hovers around $416,000, up over $29,000 from June 2013.