Top Tier Real Estate: 2024 State of Luxury Annual Report
Reflecting on 2024, Canada’s luxury real estate market navigated a complex landscape, influenced by a mix of challenges and opportunities. Political and economic uncertainties, coupled with housing taxes and regulatory changes, initially tempered market activity and increased inventory levels. However, amidst these pressures, pent-up demand, significant population growth, and declining interest rates emerged as pivotal drivers, stabilizing the market and paving the way for a promising 2025.
At Sotheby’s International Realty Canada, we observed a remarkable resilience in both conventional and luxury real estate sectors throughout 2024. As the year concluded, we witnessed a resurgence in sales activity, hinting at further momentum in the months ahead. Key markets like Toronto and Montreal experienced robust revitalization, particularly in the single-family home segment. This resurgence underscores a shift towards realistic pricing strategies, fostering constructive negotiations and facilitating movement into higher-tier markets amid favourable interest rate trends,” remarked Don Kottick, President and CEO.
Highlighting investment potential, Kottick emphasized, “The luxury condominium market in cities like Toronto and Vancouver presents compelling long-term investment prospects. With supply outpacing demand and prices adjusting, current conditions favor savvy investors. A slowdown in new construction forecasts potential supply constraints, while projected population growth further enhances investment appeal.”
In summary, amidst evolving market conditions, 2024 showcased resilience and strategic opportunities within Canada’s luxury real estate sector, setting the stage for a dynamic and promising 2025.
market highlights
Canada’s largest metropolitan real estate market steadily resurged in 2024 as luxury sales over $4 million increased 21% year-over-year in the Greater Toronto Area (GTA), setting the tone for broader trends nationwide.
The pace of Calgary’s luxury market expansion surpassed that of all other major Canadian cities in 2024, as economic confidence and record-setting interprovincial migration ignited housing demand. Residential sales over $1 million and $4 million saw annual gains of 42% and 100% respectively.
Montreal’s luxury market posted healthy annual gains of 38% in residential sales over $1 million and 16% for sales over $4 million.
Consumer sentiment and sales activity in Vancouver’s luxury market lagged in 2024, as buyers’ market conditions took hold and $4 million-plus residential sales closed the year 11% below 2023 levels.
Buyers’ market conditions solidified across the luxury condominium market in the cities of Toronto and Vancouver; however, sales over $4 million saw modest annual gains of 31% and 26% respectively.
The loosening of monetary policy by Canada’s central bank starting in June 2024 has had a steady trickle-up effect in stimulating activity, starting with the conventional, and then the entry-level top-tier and finally the luxury housing market.
Despite political volatility, Canada’s luxury real estate market remains primed for favourable buying opportunities in the initial months of 2025, with surging population growth, tempered interest rates and stabilizing home prices supporting new activity.
What This Means for Buyers and Sellers
For buyers, the key in 2025 will be preparation and flexibility. Working with a knowledgeable agent can help you stay ahead of market trends and find properties that meet your needs. For sellers, it’s a great time to showcase your home’s unique features and leverage high demand to maximize value.
Hamilton’s real estate market in 2024 demonstrated resilience and some growth amongst many challenges, setting the stage for an even more exciting bounce back in 2025. Whether you’re considering buying, selling, or investing, staying informed is essential to making the best decisions. As your trusted real estate professional, I’m here to guide and support you every step of the way.
I’d love to connect and help you make your real estate goals a reality in 2025.