Luxury real estate sales climb as pent-up demand buoys activity
Market conditions remain challenging, despite a welcome reprieve from last year’s frenzied pace
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.
City of Calgary
Market-by-market highlights
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Heated home-buying activity is spilling into luxury segments in major Canadian housing markets as supply constraints spark new rounds of competition. Much of the activity in the market can be attributed to pent-up demand, which has been building since mid-2022. Bolstered by lower mortgage rates and attractive housing values, buyers from all walks of life are taking advantage of this moment to secure home ownership.
RE/MAX Canada interviews RE/MAX brokers and agents in 15 markets from coast to coast. These are the notable luxury real estate trends taking place in the City of Calgary.
Although sales of luxury properties over $1 million are heating up throughout the city, low inventory levels continue to hamper home-buying activity. Almost 270 single-detached homes and apartments sold at $1 million plus in the first quarter, an increase of 33.8 per cent over the Q4 2022 performance but well short of record Q1 2022 levels. Market conditions remain challenging, despite a welcome reprieve from last year’s frenzied pace. Sellers remain hesitant to list their properties for sale, fearing that they will be unable to find a replacement home.
Buyers are exercising caution in the market, and although multiple offers continue to occur, the winning bid is rarely more than $20,000 to $30,000 over asking, unlike some of the frothier bids seen just one year ago. Inventory has dwindled over recent months and few new listings have materialized with the advent of the spring market. Pent-up demand is building as a result. Values at the top end of the market are ahead of Q1 2022 as a result, with the average price up more than $30,000 in the first quarter of 2023 ($1,426,848 vs. $1,405,954).
Although single-detached homes make up the majority of sales at the top end, executive condominiums are starting to see greater activity. The renewed vibrancy of the city centre, sparked by the growing number of employees returning to their jobs in the core, has also served to attract more purchasers to downtown condominium properties. Move-up buyers are behind the push for luxury homes and condominium apartments, buoyed by strong equity gains in recent years. Sales over $1 million represent approximately five per cent of the overall market, with most sales occurring between $1.3 million and $1.8 million. Luxury tastes are exceptionally personal, with some buyers attracted to acreage and square footage while others are drawn to inner-city locations in closer proximity to the city core. Some homeowners are downsizing or making lateral moves.
While it’s unlikely that luxury sales will surpass last year’s record pace in the city, supply and demand are expected to remain in sync for the remainder of 2023, which should ensure another solid year of homebuying activity and continued price appreciation at the top end of the market.
Click each city for local market insights.
Vancouver, BC
Buyers at the top end of the market are looking to take advantage of somewhat softer housing values, but many sellers are holding firm on price, even willing to pay vacancy taxes while waiting for market conditions to improve.
While move-up activity has been occurring as buyers take advantage of discounts at the top end of the market, there has been an uptick in sellers downsizing to smaller pieds-a-terre in the core or selling secondary properties to avoid tax implications.
Based on the late first quarter burst of homebuying activity, sales in the second quarter of 2023 are expected to ramp up in tandem with the traditional spring market. Buyers who have been sitting on the fence are likely to make their moves in the coming months.
READ MORE
Calgary, AB
Market conditions remain challenging, despite a welcome reprieve from last year’s frenzied pace.
Buyers are exercising caution in the market, and although multiple offers continue to occur, the winning bid is rarely more than $20,000 to $30,000 over asking, unlike some of the frothier bids seen just one year ago.
Values at the top end of the market are ahead of Q1 2022 as a result, with average price up more than $30,000 in the first quarter of 2023 ($1,441,687 vs. $1,409,253).
READ MORE
READ MORE
edmonton, AB
Despite building pent-up demand and an ongoing influx of buyers from Ontario and British Columbia, listings available for sale have slowed to a trickle, especially at the coveted $1 million–$1.2 million price point.
Existing stock, including spec properties, is most sought-after, with fewer buyers choosing to build or buy newer homes from plans due to the uncertainty of spiralling construction costs.
As the spring market takes shape, luxury REALTORS® are fielding more calls from both interested buyers and much-needed sellers but some sort of catalyst is necessary to really kick-start the housing market.
READ MORE
saskatoon, sk
Sales of luxury properties over $750,000 are on the upswing in Saskatoon, with homebuying activity in the first quarter of the year expected to exceed levels reported during the same period in 2022.
The supply of homes available for sale continues to tighten across the board.
Strong economic fundamentals continue to underpin Saskatchewan’s economy, providing an ideal backdrop for a robust housing market
READ MORE
winnipeg, mb
The pause on rate hikes has provided some slight stimulus in the market, prompting those who were on the fence or waiting for the market to bottom out to re-enter.
Sales at the top end of the market appear to be better insulated from market pressures, with uber-luxe sales over the $1.5 million price point relatively unaffected.
While the move-up market has been subdued because of carrying costs, there has been a flurry of downsizing activity in the top end of the market as property owners look to simplify their lifestyles.
READ MORE
london, on
Balanced market conditions exist at present, but rising sales are depleting the limited supply of homes available for sale in London.
New construction has faltered over the $1 million price point as the gap between resale and homebuilders’ pricing increases.
Luxury sales are expected to gain traction with the advent of the traditional spring market, but high-end buyers will likely remain somewhat cautious with the threat of further interest rate hikes ever present.
READ MORE
Hamilton & Burlington, on
February sales showed increased strength at higher price points, with affluent buyers typically seeking newer, high-end product or older homes that have been completely gutted.
Inventory levels are up over last year in the luxury segment but remain in balanced market territory.
The uber-luxe segment of the market, priced between $4 million and $5 million, has performed relatively well as it is somewhat insulated from the overall market stressors.
READ MORE
Greater Toronto Area, on
Hungry buyers returned to the market, expecting bargains and selection, but finding neither.
Limited inventory has placed upward pressure on values and prompted a new round of competitive offers on well-priced homes in desirable areas.
Buyers are feeling frustrated with the lack of selection available, particularly in the $3 million to $5 million prince range. Midtown communities such as Summerhill, Forest Hill, Annex, South Hill/Casa Loma, Bedford Park, and Lytton Park are most popular with this segment of the market.
READ MORE
Ottawa, on
Homebuying activity at the entry-level to luxury – between $1.25 million and $1.5 million – is particularly brisk, with more than half of all luxury sales occurring at that price point.
Momentum is strong heading into the spring market, a direct contrast to Q4 2022, when uncertainties plagued the housing market.
The stage is set for an active first quarter, with demand for luxury homes expected to gain traction in the coming months.
READ MORE
Montreal, QC
An ample supply of high-end, single-detached homes and condominiums is currently listed for sale across the city.
Uber-luxe buyers have been active in the market recently, driving sales at $5 million plus, including a recent sale in Westmount for almost $8 million and Ville-Marie (Westmount adjacent) for $5.6 million.
As home-buying momentum gains traction in the Island of Montreal heading into the busiest months of the year for the residential market, spillover is expected in the luxury segment.
READ MORE
Halifax, NS
Pent-up demand is building, yet there are numerous buyers on the fence, despite the pause in interest rate increases.
Inventory remains sparse at the top end of the market, with limited product available in high-demand areas such as the Peninsula of Halifax, along with Bedford and the Fall River areas.
Luxury sales in the first quarter of 2023 were slightly ahead of fourth quarter 2022 levels, but it’s too soon to tell if the spring market will blossom.
Kelowna, BC
REALTORS® are reporting renewed interest at the top end of the market in recent weeks, which should translate into more sales in the second and third quarters of 2023.
Just under 50 homes traded hands over the first three months of the year as concerns over stock performance amidst a flurry of bank failures have shaken the market.
As Canada’s fastest-growing metropolitan area, according to Statistics Canada, the increase in out-of-town and out-of-province buyers should serve to further bolster homebuying activity in the months ahead as temperatures and sales heat up.
READ MORE
Fraser Valley, BC
Lower-end price points are already experiencing multiple offers in the double-digits, with homes selling well in excess of listing prices in recent weeks.
Buyers have adjusted their expectations as sellers hold firm on asking price, while the sales-to-listings ratio signals a strong seller’s market.
Supply remains a crucial component in the housing equation; without an uptick in new listings, values will likely continue to climb.
READ MORE
READ MORE
Moncton, Nb
Moncton was one of the few Canadian markets that bucked the downward trend in luxury sales in the first quarter of 2023, posting a 55-per-cent increase in sales over $700,000.
The city’s luxury space has experienced solid growth since the onset of the pandemic.
A shortage of listings exists across every price point but are particularly scarce at the $700,000 threshold.
READ MORE
St. John's, NL
Sellers are hesitant to list their properties due to the dearth of available listings, and builders are reluctant to put a shovel in the ground without a firm commitment given today’s higher-interest-rate environment.
Representing about five per cent of total sales, the luxury segment has taken off in recent years thanks to the province’s strong economic base which remains propped up by the province’s natural resources.
The Bank of Canada announcement regarding the temporary pause in interest rates has been welcome news to buyers in the St. John’s area. While it has yet to translate into greater sales at the top end of the market, it has provided some stability for the impending spring market.
About this report
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 almost 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.
Search Listings
Find a RE/MAX Agent
2023 Spotlight on Luxury report
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 almost 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.
About the RE/MAX Network
About this report
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.
Sign Up For Our Newsletter
Find a RE/MAX Agent
Search Listings
Vancouver, BC
Buyers at the top end of the market are looking to take advantage of somewhat softer housing values, but many sellers are holding firm on price, even willing to pay vacancy taxes while waiting for market conditions to improve.
While move-up activity has been occurring as buyers take advantage of discounts at the top end of the market, there has been an uptick in sellers downsizing to smaller pieds-a-terre in the core or selling secondary properties to avoid tax implications.
Based on the late first quarter burst of homebuying activity, sales in the second quarter of 2023 are expected to ramp up in tandem with the traditional spring market. Buyers who have been sitting on the fence are likely to make their moves in the coming months.
READ MORE
Fraser Valley, BC
Lower-end price points are already experiencing multiple offers in the double-digits, with homes selling well in excess of listing prices in recent weeks.
Buyers have adjusted their expectations as sellers hold firm on asking price, while the sales-to-listings ratio signals a strong seller’s market.
Supply remains a crucial component in the housing equation; without an uptick in new listings, values will likely continue to climb.
READ MORE
Kelowna, BC
REALTORS® are reporting renewed interest at the top end of the market in recent weeks, which should translate into more sales in the second and third quarters of 2023.
Just under 50 homes traded hands over the first three months of the year as concerns over stock performance amidst a flurry of bank failures have shaken the market.
As Canada’s fastest-growing metropolitan area, according to Statistics Canada, the increase in out-of-town and out-of-province buyers should serve to further bolster homebuying activity in the months ahead as temperatures and sales heat up.
READ MORE
READ MORE
Calgary, AB
Market conditions remain challenging, despite a welcome reprieve from last year’s frenzied pace.
Buyers are exercising caution in the market, and although multiple offers continue to occur, the winning bid is rarely more than $20,000 to $30,000 over asking, unlike some of the frothier bids seen just one year ago.
Values at the top end of the market are ahead of Q1 2022 as a result, with average price up more than $30,000 in the first quarter of 2023 ($1,441,687 vs. $1,409,253).
READ MORE
edmonton, AB
Despite building pent-up demand and an ongoing influx of buyers from Ontario and British Columbia, listings available for sale have slowed to a trickle, especially at the coveted $1 million–$1.2 million price point.
Existing stock, including spec properties, is most sought-after, with fewer buyers choosing to build or buy newer homes from plans due to the uncertainty of spiralling construction costs.
As the spring market takes shape, luxury REALTORS® are fielding more calls from both interested buyers and much-needed sellers but some sort of catalyst is necessary to really kick-start the housing market.
READ MORE
saskatoon, sk
Sales of luxury properties over $750,000 are on the upswing in Saskatoon, with homebuying activity in the first quarter of the year expected to exceed levels reported during the same period in 2022.
The supply of homes available for sale continues to tighten across the board.
Strong economic fundamentals continue to underpin Saskatchewan’s economy, providing an ideal backdrop for a robust housing market
READ MORE
winnipeg, mb
The pause on rate hikes has provided some slight stimulus in the market, prompting those who were on the fence or waiting for the market to bottom out to re-enter.
Sales at the top end of the market appear to be better insulated from market pressures, with uber-luxe sales over the $1.5 million price point relatively unaffected.
While the move-up market has been subdued because of carrying costs, there has been a flurry of downsizing activity in the top end of the market as property owners look to simplify their lifestyles.
READ MORE
london, on
Balanced market conditions exist at present, but rising sales are depleting the limited supply of homes available for sale in London.
New construction has faltered over the $1 million price point as the gap between resale and homebuilders’ pricing increases.
Luxury sales are expected to gain traction with the advent of the traditional spring market, but high-end buyers will likely remain somewhat cautious with the threat of further interest rate hikes ever present.
READ MORE
Hamilton & Burlington, on
February sales showed increased strength at higher price points, with affluent buyers typically seeking newer, high-end product or older homes that have been completely gutted.
Inventory levels are up over last year in the luxury segment but remain in balanced market territory.
The uber-luxe segment of the market, priced between $4 million and $5 million, has performed relatively well as it is somewhat insulated from the overall market stressors.
READ MORE
Greater Toronto Area, on
Hungry buyers returned to the market, expecting bargains and selection, but finding neither.
Limited inventory has placed upward pressure on values and prompted a new round of competitive offers on well-priced homes in desirable areas.
Buyers are feeling frustrated with the lack of selection available, particularly in the $3 million to $5 million prince range. Midtown communities such as Summerhill, Forest Hill, Annex, South Hill/Casa Loma, Bedford Park, and Lytton Park are most popular with this segment of the market.
READ MORE
Ottawa, on
Homebuying activity at the entry-level to luxury – between $1.25 million and $1.5 million – is particularly brisk, with more than half of all luxury sales occurring at that price point.
Momentum is strong heading into the spring market, a direct contrast to Q4 2022, when uncertainties plagued the housing market.
The stage is set for an active first quarter, with demand for luxury homes expected to gain traction in the coming months.
READ MORE
Montreal, QC
An ample supply of high-end, single-detached homes and condominiums is currently listed for sale across the city.
Uber-luxe buyers have been active in the market recently, driving sales at $5 million plus, including a recent sale in Westmount for almost $8 million and Ville-Marie (Westmount adjacent) for $5.6 million.
As home-buying momentum gains traction in the Island of Montreal heading into the busiest months of the year for the residential market, spillover is expected in the luxury segment.
READ MORE
Moncton, Nb
Moncton was one of the few Canadian markets that bucked the downward trend in luxury sales in the first quarter of 2023, posting a 55-per-cent increase in sales over $700,000.
The city’s luxury space has experienced solid growth since the onset of the pandemic.
A shortage of listings exists across every price point but are particularly scarce at the $700,000 threshold.
READ MORE
Halifax, NS
Pent-up demand is building, yet there are numerous buyers on the fence, despite the pause in interest rate increases.
Inventory remains sparse at the top end of the market, with limited product available in high-demand areas such as the Peninsula of Halifax, along with Bedford and the Fall River areas.
Luxury sales in the first quarter of 2023 were slightly ahead of fourth quarter 2022 levels, but it’s too soon to tell if the spring market will blossom.
READ MORE
St. John's, NL
Sellers are hesitant to list their properties due to the dearth of available listings, and builders are reluctant to put a shovel in the ground without a firm commitment given today’s higher-interest-rate environment.
Representing about five per cent of total sales, the luxury segment has taken off in recent years thanks to the province’s strong economic base which remains propped up by the province’s natural resources.
The Bank of Canada announcement regarding the temporary pause in interest rates has been welcome news to buyers in the St. John’s area. While it has yet to translate into greater sales at the top end of the market, it has provided some stability for the impending spring market.
Click each city for local market insights.
Market-by-market highlights
Heated home-buying activity is spilling into luxury segments in major Canadian housing markets as supply constraints spark new rounds of competition. Much of the activity in the market can be attributed to pent-up demand, which has been building since mid-2022. Bolstered by lower mortgage rates and attractive housing values, buyers from all walks of life are taking advantage of this moment to secure home ownership.
RE/MAX Canada interviews RE/MAX brokers and agents in 15 markets from coast to coast. These are the notable luxury real estate trends taking place in the City of Calgary.
Market conditions remain challenging, despite a welcome reprieve from last year’s frenzied pace
Luxury real estate sales climb as pent-up demand buoys activity
Read the full national
Spotlight on Luxury Report
Read the full national
Spotlight on Luxury Report