Overall, 18 of 19 markets saw impressive sales increases, with the biggest increases in smaller urban markets like Barrie, London, Kitchener-Waterloo and Hamilton — all in Ontario — where sales of homes priced exceeds $1 million soared approximately 518%, 255%, 208%, and 200%, respectively.
Canada’s largest markets for luxury homes — Metro Vancouver and the GTA — saw sales increases of about 76% and 113%, respectively, for homes over $3 million. The latter was a GTA disc.
In those two metro areas, transactions for homes priced over $10 million increased “substantially” by 167% and 156%, respectively, RE/MAX said.
The only outlier in the country was Charlottetown, Prince Edward Island, where sales of more than $1 million fell to four units from seven sales a year earlier, he said. declared.
The company also noted that sales increases could be even higher than it had announced.
“We believe [the percentages] it just scratches the surface,” said Christopher Alexander, president of RE/MAX Canada, in a statement. “These levels probably don’t really reflect what’s happening in markets across the country given an abundance of exclusive sales, and in hot markets like Toronto, instances of private sales where buyers approach sellers whose listings have expired.”
Last year marked the continuation of a pandemic-fueled buying spree that shattered existing records for luxury home sales and, in some cases, prices, the statement noted.
“Tight inventory levels prevailed in at least half of the markets we surveyed and contributed to higher values across much of the country,” said Elton Ash, executive vice president of RE/MAX Canada, in the press release.
Brokers surveyed for the RE/MAX report attributed the increase in luxury business in 2021 to economic drivers amid the vaccine rollout, including the stock market rally.
And exchange activity was brisk in most markets as buyers took advantage of the substantial equity gains made when selling their existing properties, RE/MAX said.
Interest rates also remained at historically low levels.
Now that consumers are bracing for rate hikes, the overall real estate market could be simmering in 2022.
The national average home price hit $713,500 last month, up nearly 18% from the previous December, the Canadian Real Estate Association said Monday.