- RE/MAX Canada

Although softer housing values and greater selection have bolstered sales of detached homes over $3 million in the luxury segment of the Metro Vancouver market in the first two months of the year, strata condominium sales have taken the lead in terms of percentage increases, with sales volumes up 68 per cent year-over-year.

Twenty-seven strata condo sales averaging $4 million were recorded between January 1 and February 29 of this year. In contrast, there were 16 sales during the same period in 2023, with an average price of $4.5 million. Just over half of 2024’s strata sales (14) occurred in Vancouver’s Westside, compared to 11 sales in 2023. Luxury condo buyers at the top end of the market have adjusted expectations, allowing them to sidestep higher interest rates by choosing smaller apartments rather than larger units in the city’s most coveted strata buildings.

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While 2024 appears to be the year of the condominium, year-to-date sales of luxury detached properties in Metro Vancouver have climbed as well, rising almost three per cent in the first of two months of the year. One hundred and fifty-five detached homes changed hands over the $3 million price point so far this year, compared to 151 properties sold during the same period in 2023. Nearly half of those sales (74) occurred in the Westside, where the lion’s share of high-end activity occurs in communities, including Point Grey, Dunbar, Kerrisdale, Kitsilano, Kerrisdale and S.W. Marine Dr.

Demand for detached housing at uber-luxe levels has fallen this year in large part due to today’s high interest rate environment coupled with the Foreign Buyers Ban (implemented by the Canadian government in 2023 and extended until early in 2027). For every quarter point uptick in interest rates, a $50,000 increase in income is required. Those factors, combined with local municipal taxes, including a vacant home tax at two per cent of the total value of the property, and a hefty land transfer tax, have proven insurmountable. Just nine detached homes were sold over $6 million in the first two months of this year in Metro Vancouver, compared to 20 during the same period in 2023.

Evidence of the shift in the detached uber-luxe market appeared in the second half of 2023 but has accelerated in the first few months of 2024. Fewer buyers and an increase in the number of high-end detached properties listed for sale in Metro Vancouver has resulted in some downward pressure on values, as evidenced from the sales stats. However, many sellers are holding firm, rather than entertaining lowball offers.

Local buyers are the driving force in Vancouver’s housing market, but momentum has yet to reach the upper price points for detached housing. Long-anticipated cuts to interest rates are expected to breathe new life into the city’s luxury segment as the ripple effect moves through the overall market in the latter half of the year. Demand for both condominiums and detached homes at the top end is expected to improve, especially with rate cuts on the horizon, moving through 2024.

Spotlight On Luxury Report Archives 2023 Vancouver Spotlight on Luxury

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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

Forward looking statements

This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

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- RE/MAX Canada

Strong activity early in the year has set the stage for a robust spring housing market in the City of Montreal’s luxury sector. Year-to-date (January 1 – February 29) sales priced over $2.5 million have increased 55 per cent, with 14 freehold and condominium properties changing hands so far this year, compared to nine during the same period in 2023.

As lending rates trend lower and consumer confidence levels climb, more buyers and sellers are expected to enter the top end of the market. While inventory is currently ample at higher price points, much of the existing supply has been carried over from 2023. That scenario is expected to change in coming weeks as sellers move to take advantage of the vibrant spring market. While some luxury buyers are still sitting on the fence, hoping values will fall, increased activity is expected to place upward pressure on pricing in the months ahead.

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Pricing is key in today’s market, with local buyers more selective than in years past. Well-appointed homes are generating the greatest interest, especially when located in the city’s premier communities that have withstood the test of time – Westmount, Outremont and Hampstead. Younger buyers, looking for more funky architecture, tend to be drawn to areas like Plateau-Mont-Royal, Rosemont-La Petite-Patrie and Villeray, where modern renovations and custom builds are cropping up. New infill properties with the latest finishes, located in established older neighbourhoods have also drawn the attention of some high-end buyers.

While luxury condominiums sales are up over last year, the market has been somewhat affected by the Foreign Buyer Ban. Would-be buyers from France, the Middle East, and Asia have been shut out of the market in recent years, and the extension of the Federal government’s Foreign Buyer Ban to early 2027 has not helped. Evidence of the slowdown is most noticeable at the $800,000 to $1.3 million price point this year.

With the end of quantitative tightening by the Bank of Canada in sight, a much-improved housing market is expected to emerge in the City of Montreal. Sales are forecast to be especially brisk at the lower end of the luxury market, priced under the $1.4 million price point, where multiple offers are expected to be commonplace.

Spotlight On Luxury Report Archives 2023 Montreal Spotlight on Luxury

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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

Forward looking statements

This report includes “forward-looking statements” within the meaning of the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “believe,” “intend,” “expect,” “estimate,” “plan,” “outlook,” “project,” and other similar words and expressions that predict or indicate future events or trends that are not statements of historical matters. These forward-looking statements include statements regarding housing market conditions and the Company’s results of operations, performance and growth. Forward-looking statements should not be read as guarantees of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include (1) the global COVID-19 pandemic, which has impacted the Company and continues to pose significant and widespread risks to the Company’s business, the Company’s ability to successfully close the anticipated reacquisition and to integrate the reacquired regions into its business, (3) changes in the real estate market or interest rates and availability of financing, (4) changes in business and economic activity in general, (5) the Company’s ability to attract and retain quality franchisees, (6) the Company’s franchisees’ ability to recruit and retain real estate agents and mortgage loan originators, (7) changes in laws and regulations, (8) the Company’s ability to enhance, market, and protect the RE/MAX and Motto Mortgage brands, (9) the Company’s ability to implement its technology initiatives, and (10) fluctuations in foreign currency exchange rates, and those risks and uncertainties described in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and similar disclosures in subsequent periodic and current reports filed with the SEC, which are available on the investor relations page of the Company’s website at www.remax.com and on the SEC website at www.sec.gov. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. Except as required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

The post Montreal Real Estate: 2024 Spotlight on Luxury appeared first on RE/MAX Canada.