Coldwell Banker Global Luxury spotlights Canadian Markets in “The Report,”
“The Report” offers a comprehensive profile of key markets in Canada and around the world, as luxury home buying trends and lifestyle preferences shift
BURLINGTON, ON (March 8, 2021) – Coldwell Banker Global Luxury® has released “The Report: 2021 Global Luxury Market Insights”, offering an in-depth analysis of emerging luxury markets and buyers. Included in this year’s issue of ‘The Report’ are noteworthy trends shaped by an extraordinary year full of uncertainty and change, as well as top performing luxury markets of 2020 and those to watch in 2021.
This year, “The Report” showcases the Canadian luxury market, including national insights by Coldwell Banker Canada President Andy Puthon. Profiles of five Canadian markets include on-the-ground-perspectives from Coldwell Banker® Global Luxury® Property Specialists from these diverse markets.
“Despite the challenges of a pandemic, unprecedented demand for housing, combined with new restrictions on marketing homes, resulted in historically low inventory. This was especially evident in the luxury market,” said Puthon. “Larger, single family homes were in high demand, with the most sought after properties offering the space, amenities and lifestyle that are the hallmarks of luxury homes.”
New definitions of luxury — focusing on the intangibles of family, health, space and security — spurred new affluent living trends across North America in 2020 as buyers realigned their priorities by seeking out properties with access to the outdoors, privacy and more space. As wealthy homebuyers embraced new lifestyles, new global trends prevailed. Luxury buyer preferences expected to have staying power over the next 5 years include: the home office, demand for a second home, and the desire for single-family detached homes.
Insights on the following Canadian markets were featured in this year’s issue of ‘The Report” –
VANCOUVER, BC – Following a two-month virtual standstill on sales and pricing starting with the pandemic in March 2020, consumer confidence and buyer appetite have since come back with a vengeance. “Buyers will continue to seek value, but understand that historically low interest rates and stable economic conditions are now supporting a more competitive market,” said Marjan Mazaheri of Coldwell Banker Prestige Realty. “Even with luxury homes priced at several million dollars, multiple offer situations can come into play.”
CALGARY, AB – Over the past year, many executives from the struggling energy sector have been moving their families from Calgary to their secondary homes in BC or California. ”International buyers used to account for more than 30% of luxury home sales, yet travel restrictions have ended the influx in 2020,” said Rachelle Starnes of THE STARNES GROUP, who says the current luxury housing stock is among the finest in North America.
The current market offers potential buyers significantly lower pricing to what has prevailed during the past decade. “Properties in many luxury areas that sold for $4 million in 2012 are now being offered for less than $2.5 million, and properties once offered at $20 million are being auctioned by luxury auction houses with selling prices less than $6 million,” noted Coldwell Banker Complete Real Estate owner Susanita de Diego.
Ottawa, ON – Growing demand has driven up prices of high-end detached homes and condos in the nation’s capital. Pandemic restrictions have proven to be little more than a speed bump in the market’s upward trajectory. “The market came to an abrupt halt last March, but it didn’t take long to start moving again,” said Raymond Chin of Coldwell Banker First Ottawa Realty. Homes further afield became more popular with homeowners who may not be required to go back to work every day in the city, Chin noted. “Buyers became less concerned with longer commute times in order to find a property that meets new priorities for space, acreage, and ideally, treed or waterfront lots.”
Greater Toronto, ON – The trend has been toward upsizing, with condo owners moving into larger units or single-family homes, and those in homes seeking more interior and exterior space. “The inventory in many of Toronto’s top luxury markets dropped as sellers recognized the intrinsic value of their large homes with acreage,” says Gerald Lawrence of Coldwell Banker R.M.R. Real Estate. “Rather than moving, many invested in renovations to accommodate additional members or new purposes.”
“Recent migration patterns of buyers reflect an acceleration of plans to move away from highly urbanized areas to more rural retreats like cottage country in Muskoka or Haliburton,” explained Lawrence. “What had been plans on the horizon for the next three to five years were moved forward and compressed into a six-month period; with city flight in full gear and a heightened demand for rural destinations. For some luxury buyers, these plans took the form of an additional purchase, rather than an alternative property.”
Halifax, NS – The biggest home-buying boom in a generation is currently underway in Halifax. “I’ve been in the real estate business here for more than 30 years, and I have never seen a market where there is literally no property available. Even those that are more remote or that have been on the market for a long time have been sold,” says Mariana Cowan of Coldwell Banker Supercity Realty.
Halifax homebuyers have shown less of a need to be near work, and there is greater interest in properties with more square footage and locations in less dense neighbourhoods with easy access to the great outdoors. Home offices have grown in importance. At the same time, the pandemic has not taken a heavy toll on Halifax, so luxury condo sales have fared relatively well.
Designed to be a definitive guide for international high-end property buying and selling, The Report adds insider intelligence to strong industry research by combining anecdotal insights from local market professionals affiliated with the Coldwell Banker® brand, as well as The Institute for Luxury Home Marketing, Wealth-X, and other leading luxury insiders.
About Coldwell Banker Global Luxury®
The Coldwell Banker Global Luxury® program legacy traces its roots to 1933 and has been a world leader in luxury real estate since. Coldwell Banker Global Luxury Property Specialists are an exclusive group within the Coldwell Banker organization, making up under ten percent of independent sales associates affiliated with the brand worldwide. Coldwell Banker affiliated agents conducted 32,663 transactions of homes priced at $1 million or more in 2020. This equates to $168.4 million in luxury sales every day (+16.6% YOY) with an average sales price of $1.9 million in this category. Coldwell Banker, the Coldwell Banker logo Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are registered marks owned by Coldwell Banker Real Estate LLC. Each franchise is independently owned and operated.