FILE - A real estate sign is pictured in Vancouver, B.C., Tuesday, June, 12, 2018. The Sotheby’s International Realty Canada Top Tier Fall Forecast, released on Wednesday, Sept. 25, 2019, predicts a gradual recovery for the top-tier housing market in Vancouver throughout fall 2019. (THE CANADIAN PRESS Jonathan Hayward)

Vancouver’s luxury real estate market to get a boost: forecast

Sotheby’s calls for gradual, tenuous recovery for top-tier market through fall

Vancouver’s luxury real estate market is expected to get a boost this fall after prolonged uncertainty, even though sales above $1 million were low in the first half of September.

The top-tier market started to turn around this summer, according to a Sotheby’s International Realty forecast, after a decrease of 33 per cent year over year in the first half of 2019.

And while preliminary market data shows a 27-per-cent year-over-year pullback in sales above $1 million in the first 15 days of September, Sotheby’s forecasts a gradual, albeit tenuous market recovery throughout the rest of fall.

The real estate sales and marketing company said sales of condominiums, attached and single-family homes higher than $1 million increased 25 per cent from July and August 2018 levels, to 564 properties sold.

During the same time, sales between $1 million to $2 million increased 30 per cent to 411 properties, and sales between $2 million and $4 million increased 26 per cent to 132 units.

However, the luxury $4-million market in Vancouver remained soft. Sales above $4 million actually declined 32 per cent, to 21 units sold in July and August 2019.

READ MORE: Greater Victoria sees real estate prices soften in August

After gains made in the summer, and despite sales being down in the first half of the month, Sotheby’s said pent-up demand is expected to release into new activity and housing prices are expected to continue to drop to match current conditions.

For example, benchmark prices for single-family homes receded 11 per cent in August to $1,346,500 in Vancouver East and 12 per cent in Vancouver West to $2,880,800. Sotheby’s said this repositioned the homes as viable alternatives to higher-density options for some top-tier buyers and investors.

The forecast also cited year-over-year employment growth in Vancouver as a reason for market recovery.

READ MORE: Developer offers free Tesla 3 with purchase of South Surrey townhome

The leading Canadian housing market in the forecast was the Greater Toronto Area.

Significant increases were experienced in the GTA across every housing type, Sotheby’s said, as condominium, attached and single-family home sales above $1 million rose 13 per cent, 45 per cent and 29 per cent from 2018 levels, respectively.

Preliminary sales figures for the first 15 days of September also suggest robust fall activity ahead, as overall $1 million-plus sales surged 53 per cent year-over-year, and sales higher than $4 million rose 75 per cent.



karissa.gall@blackpress.ca

Like us on Facebook and follow us on Twitter

Just Posted

More than 300 teens take to the polls at Mount Douglas Secondary for mock federal election

‘This is a pretty engaged generation,’ says Mount Douglas Secondary social studies teacher

Access: A day in the life using a wheelchair in Victoria

Black Press Media teamed up with the Victoria Disability Resource Centre to learn about barriers

CRD aims to reduce solid waste going to Hartland Landfill by a third by 2030

District launches public engagement campaign for waste reduction strategies

Lieutenant Governor Janet Austin receives first poppy in Legion-led ceremony

The ceremony is one of the first steps to kick off the 2019 poppy campaign

18-year-old man stabbed near Langford bus exchange

The West Shore RCMP is looking for witnesses to the Oct. 11 incident

VIDEO: Explosion, fire sends woman running from Saanich home

Heavy smoke in the area, crews on scene

Zantac, the over-the-counter heartburn drug, pulled in Canada, U.S.

Health Canada also investigates possible carcinogen in some ranitidine drugs

B.C. public safety minister says cannabis edibles not in stores til January

Mike Farnworth says he wants regional issues considered when it comes to licensing

POLL: Do you think the day of the federal election should be a statutory holiday?

Increasing voter turnout has long been a goal of officials across the… Continue reading

Greta Thunberg calls for climate action in Alberta, but doesn’t talk oilsands

Swedish teen was met with some oil and gas industry supporters who came in a truck convoy

Scheer denies spreading ‘misinformation’ in predicting unannounced Liberal taxes

Conservative leader had claimed that a potential NDP-Liberal coalition could lead to a hike in GST

Chilliwack man pleads guilty in crash that killed pregnant woman

Frank Tessman charged under Motor Vehicle Act for accident that killed Kelowna school teacher

Kawhi Leonard, former Toronto Raptor, welcomed back to Vancouver at pre-season game

Fans go wild at pre-season game between L.A. Clippers and Dallas Mavericks at Rogers Arena

Greens and NDP go head to head on West Coast; Scheer takes fight to Bernier

Trudeau turns focus to key ridings outside Toronto after two days in Quebec

Most Read