‘Home’ was the MVP of 2020: Ottawa’s $4 million-plus category saw astounding price growth of 10.4% signaling a new era for the Canadian luxury real estate market
Engel & Völkers releases its annual year-end Canadian Luxury Real Estate Market Report including 2021 forecasts for homes exceeding $1 million, projecting homes in Canada will grow in value by 7.5% in 2021. Its year-end report covers trends that drove housing in Montreal, Ottawa, Toronto and Vancouver, with Victoria featured as a Market to Watch.
“From coast to coast, Canada experienced unprecedented levels of domestic home trading across the country. With borders closed, Canadian real estate proved it’s built on solid fundamentals,” said Anthony Hitt, president and CEO, Engel & Völkers Americas. “As it relates to home value, there is no question both fiscally and in sentiment, it’s never been greater in the Canadian market.”
Engel & Völkers forecasts low interest rates will continue to drive the market in 2021, along with a growing number of expatriates returning to Canada amidst global uncertainty. New this year, Canadian Engel & Völkers shops are reporting an unprecedented level of interest from American buyers. While there is a temporary buying opportunity in Canada’s downtown condo markets, especially in Toronto and Vancouver, however, once borders reopen, it’s expected Canadian markets will return to pre-pandemic levels of supply and demand.
Montreal led the charge as the nation’s most pandemic-resilient metropolitan market. Year-over-year sales volume grew by 32%, and prices rose by 21% for all price points. The Quebec government not deeming real estate as an essential service created the inability to list properties and therefore market conditions showed constrained supply while domestic demand was high. This translated into a 19% increase in closed transactions over $1 million compared to last year for Engel & Völkers Montreal.
Ottawa experienced an unprecedented real estate boom in 2020, selling a record-breaking $10 billion worth of property. Homes priced $4 million or higher experienced price growth by a tremendous 10.4% year-over-year. A September sale in the $4 million-plus category, closing at $4,825,000, is driving a flood of new listings at this price point. In 2020, the Engel & Völkers’ Ottawa Central shop completed 100 transactions over $1 million.
Toronto buyers were presented with a rare and temporary buying opportunity in the condo market. Mass exodus from cities led to rising inventory and sales price drops in the tens of thousands. These conditions will remain until borders reopen. Upward pressure on the market has already returned. In December, condo sales transactions were up an impressive 75.9% year-over-year – indicating savvy buyers are already seizing the day. Deals closed by Engel & Völkers Toronto saw a 12% increase in average sales price.
Vancouver’s market was driven by locals looking to move down, move up or move out as they reevaluated their home needs. The number of units sold above $4 million consistently trended upward through 2020 up to year-end. Demand sustained through 2020, exemplified by a $6.4 million Point Grey home sold within one week in mid-December. Engel & Völkers’ Vancouver shop facilitated 44.5% more transactions on over $1 million compared to last year.
Victoria is highlighted as a market to watch as sales volume in the $4 million-plus category grew by 500% in 2020. There were 114 transactions for waterfront homes in total and 20 properties sold for over $4 million. Of those 20 properties, Engel & Völkers brokered the sale of 10. Engel & Völkers Victoria shop saw transactions over $1 million increase by 46.7%.
About Engel & Völkers
Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process for today’s savvy homeowner. Engel & Völkers currently operates approximately 225 shop locations with more than 4,200 real estate advisors in the Americas, contributing to the brand’s global network of over 12,000 real estate professionals in more than 30 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate, yachting and aviation. Committed to exceptional service, Engel & Völkers supports its advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.