2025 Spotlight on Luxury Report

Luxury home-buying shifts in most major Canadian markets after strong start to 2025

Kingsley Ma

"Canadian homebuyers expressed solid enthusiasm for luxury real estate of out the gate in 2025, with growing consumer confidence, robust stock market performance and a more favourable lending environment

2025 Spotlight on Luxury

Area Vice President, RE/MAX Canada

Regional Overview

Luxury home-buying activity ramped up early in the year but the threat of looming tariffs and resulting economic uncertainty stifled burgeoning housing markets. RE/MAX examined luxury real estate trends and developments in 12 major Canadian housing markets in the first two months of 2025 compared to the same period one year ago, and found that smaller markets with lower price thresholds experienced greater sales activity, while higher-priced markets saw a contraction in year-over-year sales. Luxury home sales increased in 75 per cent of markets (nine/12), with eight markets experiencing double-digit percentage increases including Saskatoon (+100 per cent), Island of Montreal (+78.6 per cent), Edmonton (+69.7 per cent), Ottawa (+51.5 per cent), Halifax Regional Municipality (+42.9 per cent), London-St. Thomas (+22.4 per cent) and Calgary (+11.5 per cent). Luxury sales in Winnipeg increased 9.5 per cent. Meanwhile, reporting double-digit declines in year-over-year sales were Hamilton (-41.2 per cent), Greater Vancouver (-12.8 per cent) and the Greater Toronto Area (-11.2 per cent).

Secondary factors have since contributed to overall concerns, including recent volatility in stock markets. For some would-be high-end buyers, the deterioration of stock portfolios, even on paper, have given reason to pause. U.S. holdings in the Nasdaq, S&P 500, and the Dow are down from the start of the year, with some markets nearing correction territory before rebounding. That, combined with jitters over an upcoming federal election in Canada, have curtailed activity in the luxury segment, particularly in larger markets including the Greater Toronto Area and Greater Vancouver.

Vancouver, BC

Despite a strong start to the year, sales of luxury detached housing in the Greater Vancouver Area fell short of year-ago levels in the first two months of 2025, as concerns over trade wars and election jitters rattled the market. Sales of detached properties over the $3-million price point fell by 21.4 per cent to 135 units between January and February 2025, down from 172 units during the same period in 2024. Condominiums, however, bucked the downward trend, with 15 units sold so far this year, compared to zero in the first two months of 2024.

Demand grows for luxury at lower price points

Top-tier condominiums over the $3-million price point have also experienced stronger activity in Greater Vancouver and the Greater Toronto Area despite the current market climate. Fifteen properties changed hands in Greater Vancouver in the first two months of the year, up from zero the previous year, while 12 condominiums were sold so far this year in the GTA, compared to 11 sales between January and February 2024.

“Nearly all markets have been bolstered by population growth in recent years. In-migration and immigration continue to play a significant role in supporting demand at luxury price points in markets including Calgary, Edmonton, Saskatoon, Halifax Regional Municipality and Moncton, albeit at a slower pace than in years past.”

Among those markets noting an especially strong increase in new residents, according to Statistics Canada’s Annual Demographic Estimates, Census Metropolitan Areas, and Census Agglomerations: Interactive Dashboard, was Vancouver (12 per cent growth between July 1, 2021 to July 1, 2024); Calgary (21,000 new residents from July 1, 2023 to July 1, 2024) buoyed by interprovincial migration from Ontario and British Columbia; Saskatoon (almost 10 per cent growth in a three-year period); London (with more than 40,000 new residents since July 2022); Island of Montreal (with 132,000 new residents added between July 1, 2023 and July 1, 2024); as well as Halifax (with almost 13,000 new residents between July 1, 2023 and July 1, 2024). “Despite some pullback in recent weeks, there is a thread of optimism in luxury housing markets across the country,” says Villiard. “The economic upheaval that the threat of U.S. tariffs has brought to Canadian provinces to date has been profound, but underlying buying intentions are healthy. It’s now a matter of timing. Purchasers will move forward when calmer conditions emerge or as they acclimatize to the new normal.”

In half of all markets analyzed, peripheral areas outside

Outward moves

the urban core were attracting more luxury buyers, as some look to stretch their dollar or seek larger lot sizes.

Samantha Villiard, Vice President of Regional Development, RE/MAX Canada

While concerns regarding the impact of future US tariffs on the oil and gas industry and the upcoming federal election exist, there appears to be nominal pullback in Calgary’s luxury housing market with sales over $1.5 million up more than 11 per cent over last year’s levels. Sixty-eight properties changed hands in the first two months of 2025, up from 61 per cent during the same period in 2024.

Calgary, AB

Interprovincial migration into the Edmonton area continues to spur homebuying activity in the luxury segment, with sales over $1 million up almost 70 per cent in the first two months of 2025. Fifty-six properties changed hands between January and February, up from 33 sales one year ago. While most high-end sales are occurring between $1 million and $1.5 million, there have been a number of uber-luxe sales in the market. Infill has gained serious momentum over the past year, with new luxury construction evident in Edmonton’s premier communities.

Edmonton, AB

Strong economic growth, coupled with an almost 10 per cent increase in population over a three-year period, have contributed to continued upward momentum in Saskatoon’s luxury housing market. Demand remains strong for high-end homes priced over $700,000, with year-to-date sales doubling over 2024 levels. Forty-four homes were sold in the first two months of 2025, up from 22 sales one year earlier. While inventory levels have increased heading into the traditional spring market, most properties are selling within a day or two.

Saskatoon, SK

Luxury homebuying activity in Winnipeg has edged higher yet again in 2025, with equity gains spurring the most recent spike in sales over the $800,000 price point. Twenty-three freehold properties were sold in the first two months of the year, climbing six per cent over the 21 homes sold during the same period in 2024. Tight inventory levels continue to exist for housing product under the $500,000 price point, which has prompted greater activity in the move-up segment. Demand is greatest for older, character homes on generous lot sizes in established neighbourhoods.

Winnipeg, MB

While rapid population growth and strong economic initiatives have served to fuel luxury homebuying activity in London in recent years, talk of US tariffs on the steel and automotive industries have given would-be purchasers reason to pause, with many buyers at the top end of the market adopting a wait- and-see approach. Luxury sales over $1 million represent approximately eight per cent of overall homebuying activity in London this year.

London, ON

On the heels of a strong fourth quarter, the Greater Toronto Area’s (GTA) luxury market appeared poised for substantial growth in 2025. Luxury buyers were looking forward to further rate cuts and high-end sellers were anticipating an increase in traffic as pent-up demand was unleashed. Then came the threat of US tariffs in late January–which served to obliterate the optimism building in the market and create uncertainty in the overall economy.

Greater Toronto Area, ON

Luxury home-buying activity experienced a substantial uptick in Ottawa during the first two months of 2025, with single-family detached freehold sales rising almost 57 per cent year over year. Forty-seven properties changed hands over the $1.3 million price point, compared to 30 during the same period in 2024. Condominium sales over $1.3 million have remained stable, with three sales recorded in January and February of both this year and last.

Ottawa, ON

Declining interest rates have served to bolster luxury homebuying activity on the Island of Montreal in the first two months of the year, with sales building on momentum gained in the final quarter of 2024. Twenty-five luxury properties sold over the $2.5 million price point in January and February of this year, up from 14 sales during the same period in 2024, representing a percentage increase of close to 80 per cent.

Montreal, QC

Strong population growth continues to contribute to Halifax Regional Municipality’s housing market in 2025, with the city’s luxury segment reporting a close to 43-per-cent increase in sales over the $1.2 million price point. Twenty properties, including 19 freehold and one condominium, changed hands over $1.2 million in the first two months of the year, up from 14 sales during the same period in 2024.

Halifax, NS

stimulating activity at all price points. Unfortunately, the climate changed quickly amid increased political tensions between Canada and the U.S. as a trade war ensued and tariffs on goods were levied by both countries, fuelling uncertainty."

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RE/MAX found the lower- to mid-range price points of luxury remain in greatest demand in most urban centres. The Greater Toronto Area (GTA), where the uber-luxe segment has proven quite resilient, was the only outlier, with sales over the $7.5-million price point up considerably over year-ago levels. Seven properties have changed hands year to date in the GTA, including four over the $10-million price point.

Meanwhile, recent federal government changes including the higher $1.5-million cap on CMHC-insured mortgages, provided a lift to luxury home-buying activity at higher price points in several markets at the outset of the year. Luxury sales in Edmonton and Saskatoon were directly impacted by the increase, which came into effect in December 2024. With the price point for luxury starting at $1 million in Edmonton and $700,000 in Saskatoon, the move has provided buyers with more leeway in terms of smaller downpayments, while 30-year amortization periods have helped to lower monthly payments.

Solid fundamentals support the long-term outlook for luxury real estate in Canada. For example, a recent Statistics Canada report found total household net worth in the country rose as asset values were buoyed by equity and foreign investments. Household net worth increased over all four quarters of 2024 as households ended the year with nearly $1.2 trillion in additional wealth, compared to the same period at the end of 2023.

Luxury market outlook & trends

High net worth individuals are expected to continue to contribute to the country’s housing market as real estate continues to rank high on the investment list. Just under two million millionaires called Canada home in 2023, up four per cent from the previous year, and expected to climb to 2.4 million by 2028, according to Swiss Bank UBS Group. The latest Knight Frank Wealth Report pegs the number of Canadians with a net worth north of $10 million U.S. at almost 65,000 in its 2025 report.

A 2023 report by the Chartered Professional Accountants (CPA) Canada noted that the largest generational transfer of wealth in Canadian history is already underway, with the Silent Generation and Baby Boomers expected to gift over $1 trillion to their heirs through 2026.

“The wealth transfer in Canada is unprecedented, and we are already seeing the impact of the download occurring in markets across the country,” explains Ma. “While conditions continue to ebb and flow based on the economic climate, there’s no question that this variable will have a positive effect on all segments of housing in the long term. In the interim, pent-up demand will continue to build, borrowing rates should continue to fall, and need-based sales will occur regardless of market conditions."

"While there may be some economic turbulence in the foreseeable future, the Canadian luxury real estate tends to be quite resilient. Like the ocean, receding levels are often followed by a wave.”

since 1990, as well as Saskatoon, Winnipeg, Hamilton, London, Moncton and Halifax. In Greater Toronto, builders have paused on speculation and end users are now hesitant to move forward as tariffs threaten to increase construction costs. In fact, most markets noted that new construction would likely slow if the trade war continues.

continue unabated in Edmonton, which recorded the most housing starts

Infill and new construction

Builders are taking note, with some incorporating secondary units or suites in new luxury builds, while more custom-build end users also design with secondary suites in mind. This trend can take many forms, bolstered by the ‘sandwich generation’ as a greater number of Generation X and Millennials become caregivers or accommodate adult children who are living at home longer.

The trend is materializing at all price categories and the luxury market is no exception.

Multi-generational living

as the number of people nearing or entering retirement or becoming empty nesters grows. Yet, downsizing doesn’t look like it once did, as Boomers and Generation X redefine the trend by making lateral moves at similar price tags but with smaller, easier-to-maintain footprints.

Downsizing is ramping up among aging luxury buyers,

The rising trend of downsizing

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the urban core were attracting more luxury buyers, as some look to stretch their dollar or seek larger lot sizes.

In half of all markets analyzed, peripheral areas outside

Moving up – and out

Demand for affordable luxury has played a role in the upswing in sales over $2.5 million in Burlington as move-over buyers from markets in Toronto and Oakville took advantage of the city’s blue-chip real estate in the first two months of the year. Eight properties, both on and off the Burlington waterfront, changed hands in January and February, up from four during the same period in 2024. Luxury sales over $3 million in Oakville posted a 55-per-cent decline–with just 10 sales occurring in the first two months of the year, compared to the 22 reported in 2024.

Hamilton-Burlington, ON

Stability continues to characterize Moncton’s luxury housing market, despite ongoing economic and political uncertainty in the Canadian market. Luxury sales are up 19 per cent year to date, with 50 properties changing hands over the $500,000 price point, compared to 42 during the same period in 2024. Migration patterns remain healthy in the city, with affordability and quality of life attracting buyers to the province.

Moncton, NB

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Halifax, NS

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