Market Trends of Canada Luxury Residential Real Estate Industry
This section covers the major market trends shaping the Canada Luxury Residential Real Estate Market according to our research experts:
Pandemic Accelerated Luxury Home Sales in Major Canadian Markets
Demand for Canadian luxury properties shifted into high gear from coast-to-coast in 2021 as both domestic and non-resident consumption of tangible assets such as residential real estate reached new levels. As a result of the pandemic, there has been a run on real estate that has affected every segment of the market, and the value of the property has skyrocketed, not only as a source of shelter but also as a coveted asset class with a high return on investment.
In 2021, the highest growth occurred in smaller urban markets such as Barrie, London, Kitchener-Waterloo, and Hamilton, where sales of homes priced over USD 1 million have climbed 517.8%, 255.1%, 208%, and 199.5% respectively.
In 2021, the market saw the continuation of a pandemic-fueled buying spree that began in 2020 and shattered previous records for luxury property sales and, in some cases, price points across the country. Real estate markets continued to rise despite a third and fourth wave of Covid-19 in 2021.
Home sales are pushing into higher price points across the country. The luxury segment over USD 3 million represents approximately 4% of total sales in Metro Vancouver and 1.8% of sales in the GTA. Sales over USD 1 million in Halifax-Dartmouth represent 2.2% of total sales. Records were broken for luxury sales over USD 3 million in the Greater Toronto Area in 2021, while Metro Vancouver fell short of 2016 record levels by just over 200 sales.
Technology and Social Media Driving the Market
Matterport and other 3-D tours are fairly standard these days, and now virtual reality tours are starting to take off in Canada. Offering an interactive, 3-D house tour caters to today's busy homebuyer. Every company has also started incorporating drone photography and videography into their listings to offer potential buyers a broader perspective on the property and its neighborhood.
With commercial drone use now legal in Canada, it's worth considering whether drone photography and videography are also helpful for real estate appraisal inspections. Drones used for real estate photography can provide detailed data for everyone involved in the purchase or sale of a home or business.
More people are using social media to shop for homes, which is increasing sales in the market. As more informed and smart consumers took use of internet platforms that made pricing and home tours more accessible, social media leads and referrals increased.
There were 36.89 million internet users in Canada in January 2022. Canada's internet penetration rate stood at 96.5 percent of the total population at the start of 2022. The internet users in Canada increased by 312 thousand between 2021 and 2022.
There were 33.30 million social media users in Canada in January 2022. The number of social media users in Canada at the start of 2022 was equivalent to 87.1 percent of the total population. The social media users in Canada increased by 1.1 million between 2021 and 2022.
