Luxury home sales are on the rise in certain areas of Canada as buyers seek refuge from the high prices of big cities. According to a recent report, luxury home sales in the Greater Toronto Area (GTA) and Greater Vancouver Area (GVA) have seen a significant surge in the past year.
The report, released by real estate company Sotheby’s International Realty Canada, found that sales of homes priced at $4 million or higher in the GTA increased by 157% in January and February of 2021 compared to the same period last year. In the GVA, luxury home sales saw a 61% increase during the same time frame.
Experts attribute this trend to the ongoing COVID-19 pandemic, which has led to a shift in priorities for many homebuyers. With remote work becoming the new norm, people are no longer tied to living in expensive urban centers and are instead seeking larger, more affordable properties in suburban and rural areas.
In addition, the low interest rates and high savings rates during the pandemic have also contributed to the increase in luxury home sales. Many buyers are taking advantage of the favorable market conditions to upgrade their living spaces and invest in larger, more luxurious properties.
However, this trend is not limited to just the GTA and GVA. Other cities such as Montreal and Ottawa have also seen a rise in luxury home sales, with increases of 50% and 40%, respectively.
Despite the surge in luxury home sales, the overall real estate market in Canada remains strong. The report notes that the demand for homes in the $1 million to $2 million range has also increased, with sales in this category up by 44% in the GTA and 48% in the GVA.
In conclusion, the COVID-19 pandemic has had a significant impact on the real estate market in Canada, with luxury home sales seeing a notable increase in certain areas. As remote work and lifestyle priorities continue to shift, it will be interesting to see how this trend evolves in the coming months.
