Mid-Year 2022
Engel & Völkers Canadian Luxury Real Estate Market Report
Table of Contents Introduction
5
National Overview
6
Canada at a Glance
8
Halifax
10
Montréal
16
Ottawa
22
Toronto
28
Vancouver
34
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 3
Introduction Engel & Völkers welcomes you to its mid-year Canadian Luxury Real Estate Market Report. On-the-ground intel from local Engel & Völkers experts combined with market data informs our analyses and serves as the basis for trends and forecasting. Residential class homes and condominiums priced $1 – 3.99 million and over $4 million as listed on the MLS were evaluated throughout the year. The report covers Halifax, Montréal, Ottawa, Toronto and Vancouver in addition to notable highlights in other key markets throughout the country.
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 5
National Overview Engel & Völkers reports the premium markets in Halifax, Montréal, Ottawa, Toronto and Vancouver are moving toward balanced market conditions. Market prices will accelerate again when ‘wait and see’ buyers return
Interest rates rise from emergencyresponse lows to combat inflation
Buyers are taking a breath as they wait to see where
The Bank of Canada is on a pathway toward increasing
prices will land as the market normalizes. Prices are
interest rates following historic lows as an emergency
adjusting downward after shooting beyond typical
response. While the overnight rate continues to climb, it
seller’s market growth during the COVID pandemic. In
can still be considered low historically. Inflation continues
the second half of 2022, cities will continue to be the
to rise in Canada and beyond, largely due to higher
most attractive locations — especially as gas prices
prices for food and energy. Both the Russian invasion
rise and people return to the office. Buyers are able
of Ukraine and global supply chain issues, including
to capitalize on this market pause and make deals.
China’s strict COVID-related lockdowns, are creating
The moment buyers who are taking a ‘wait and see’
economic flow blockages and boosting inflation.
approach return, the market will accelerate again simply because of the lack of supply to meet demand.
Markets across Canada are normalizing, new level of prices set
New home prices increase while resale market cools Construction costs of residential buildings grew by 25 per cent year-over-year in the first quarter of 2022.
Following two years of quantitative easing, the Bank of
These rising costs are trickling down to consumers and
Canada introduced a series of interest rate hikes in the
contributing to increases in new home prices. Higher
first half of 2022, beginning in March. In tandem with
material costs combined with government regulation
the rate hike announcement in February, the number
are creating real and present pressures on new home
of buyers in Canada’s major markets began waning
building in Canada. This comes when more people than
and prices began dropping. This buyer retreat initiated
ever are calling on the government and industry leaders
a process of market normalization which continued
to work together to solve Canada’s supply crisis. At
through the first half of the year. Prices for properties in
the same time, rising interest rates are contributing to
downtown hubs generally held their value, while prices
a cooling resale market, where fewer buyers are willing
for homes in the exurbs, most notably townhomes, saw
to jump in while the real estate market goes through
prices drop compared to the height of the 2021 market.
a period of adjustment. Many would-be buyers are
6 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
seeking out rentals, causing rental markets to return
for a parent or moving cities. Cities are projected to be
to pre-pandemic prices in Canada’s downtown cores.
the hottest markets, with 81 per cent of luxury home
The average national rent was $1888 per month in May
sellers surveyed living in urban centres and 67 per cent
2022, growing by 10.5 per cent year-over-year.1
wanting to stay there.
Generational shift: demographic weight of boomers in decline
Opportunity knocks in the next half of 2022
For the first time since 1964, baby boomers now make
The next half of the year, buyers are in a rare position
up less than 25 per cent of Canada’s population.
to negotiate on prices and deal terms. Some homes will
Younger generations account for more of Canada’s
still command multiple offers, but they will be fewer in
population due to aging and immigration. It is projected
number. First-time homebuyers should especially take
that millennials may become the largest generation in
advantage of this moment in the market. When interest
the country by 2029. More than half of the immigrants
rate hikes stabilize and buyers feel the market prices
settling in Canada from 2016/2017 to 2020/2021 were
have bottomed out, competition will return, which could
millennials, contributing significantly to the growth of this
happen as early as fall 2022. Working with an expert real
working-age population. Millennials accounted for 35.1
estate advisor with a high degree of localized knowledge
per cent of the downtown population in Canada’s urban
will be key to brokering the best deals.
centres in 2021, while boomers accounted for 20.9 per cent. More than two in five people are millennials in Halifax (43.7 per cent) and Toronto (40.5 per cent).2 According to a survey published last year by Engel & Völkers, more than 80 per cent of home sellers will be Gen Xers and millennials in 2022. Much of the activity will be driven by major life milestones such as starting a business, expecting a baby, getting married, caring
1 2
Rentals.ca, May 2022 Statistics Canada, April 27, 2022
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 7
Canada at a Glance
28%
2022
Average home price up by 28% yearover-year in GTA in May “The average home price grew by nearly 28 per cent year-over-year in the Greater Toronto Area in May. Demand is still strong in the $1 million-plus
Engel & Völkers lists highest priced property for Whistler Maggi Thornhill represents the seller of 5462 Stonebridge Drive with a record-breaking list price of $30,104,608.
segment, even as the Bank of Canada increases interest rates. At the same time, rising interest rates have buyers moving with caution and have cast a light on the current abnormal economic conditions,” says Ron Amendola, license partner, Engel & Völkers Toronto Uptown.
Lyndi Cruikshank appointed President of the Association of Interior REALTORS® “I look forward to leading association members as the Okanagan region continues to set record after record. Migration from the Lower Mainland area accounts for 25 per cent of single-family home purchases. This year we handled the highest priced residential lakefront sale in the area on Hody Drive in Okanagan Falls,” says Lyndi Cruickshank, license partner, Engel & Völkers South Okanagan.
Record-breaking sale: Highest ever sale for a condo in Sidney, B.C. James LeBlanc and Scott Piercy represent the seller in a record-breaking sale of a condo with 4-9885 Second Street. The unit sold for $3,695,000 after spending only 12 days on the market.
Kelowna emerges as Canada’s fastest growing city “As the fastest growing census metropolitan area, Kelowna is now a favourite mid-sized city for Canadians. A major draw for luxury and ultraluxury buyers is the nearby acclaimed Okanagan Valley wine region, with lakefront property driving the most interest,” says Richard Deacon, advisor, Engel & Völkers Okanagan.
Record-breaking sale: Highest priced MLS sale in Cortes, B.C. Jim LeBlanc and Scott Piercy represent the seller of the highest priced MLS sale on Cortes Island with 309 Sutil Point Road for $7,100,000.
8 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
Engel & Völkers opens shop in Grimsby
Record-breaking sale: 16 Windfield Drive West in Oro-Medonte, ON
“Remote and hybrid work models are here to stay,
“Barrie’s close proximity to Toronto makes it a
and buyers are looking to the Golden Horseshoe region to get the best of both worlds — good value, beautiful surroundings and proximity to the nearby cities of Hamilton and Niagara Falls. We expect to see continued interest in Grimsby throughout the year,” says Mary Couturier, license
sought-after community. Its residents enjoy yearround lifestyle amenities. In March 2022, we made a record-breaking sale for an off-water home in a high-end neighbourhood, selling for $3,850,000,” says Jeremy Brooks, license partner, Engel & Völkers Barrie.
partner, Engel & Völkers Grimsby.
60% Sales volume increases by 60% yearover-year in Calgary’s $1 million-plus segment in May “Premium sales are booming as buyers from Ontario and British Columbia flock to the region. Both investors and those migrating are seeing more house for their dollar compared to other major cities in Canada,” says Chynna Winters, managing broker, Engel & Völkers Calgary.
Migration continues to propel Kamloops market
Waterloo Region sets new benchmark price record
“Through 2021 low inventory led to rapid price
“Demand for Waterloo Region is on the rise,
increases and record-breaking luxury market
with a 25 per cent growth in prices year-over-
sales in Kamloops, currently the third fastest
year. In March, the average price for a detached
growing census metropolitan area. In April 2022,
home peaked at $1.15 million, surpassing the
we saw a 96 per cent uptick in new listings year-
$1 million benchmark for the first time,” says Nik
over-year. Combined with rising interest rates,
Poulimenos, license partner, Engel & Völkers
the market is moving towards a more balanced
Waterloo Region.
framework,” says Matt Town, license partner, Engel & Völkers Kamloops.
Days on market see significant drop in Victoria “The average price has climbed as inventory was quickly absorbed across all housing types. This momentum has created upward pressure on prices — year-to-date, we’ve seen over 1000 sales for properties priced over $1 million, with 10
Record-breaking sale: 576 Hody Drive in Okanagan Falls, B.C. Engel & Völkers South Okanagan executes the highest priced residential lakefront sale in Okanagan Falls with 576 Hody Drive.
of them being for homes priced over $5 million. Average days on market has dropped by 50 per cent for condos and 35 per cent for detached homes,” says Chris Margetts, Vice President, Operations, Engel & Völkers Victoria.
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 9
Halifax $1 – 3.99 million range saw a 68.7% year-over-year increase in the number of units sold. Welcome to Halifax Since 2020, the Halifax Regional Municipality (HRM)
rose by four per cent from 2014. Nationally, this was only second to Ottawa’s five per cent growth.
has experienced unprecedented interest. Its low COVID
The number of homes priced over $1 million continued
case counts combined with affordability, open space and
to tick up in tandem with overall market value, but
waterfront lots were a perfect storm. Overall market value
January and February were slower months for this price
increased significantly, with sustained interprovincial and international demand making multiple offer scenarios on homes the norm. As we enter the mid-point of 2022, minor price fluctuations in the $1 – 3.99 million market and the conventional market represent the new normal. In April, the Bank of Canada began raising interest rates; in response, fewer sales were reported in May. Multiple offers remain common, though fewer, and units sold over asking have declined. In 2021, interprovincial migration accounted for 60 per cent of Nova Scotia’s population growth. The HRM’s
“ Working from home has become permanent for many — folks are drawn to Nova Scotia for its charming and slow-
population hit 1 million in 2022’s first quarter and is
paced lifestyle. Although the market
expected to climb as Halifax works to attract skilled
has slowed in the past two months, we
workers. Out of the newcomers to Halifax last year, 7,213 were 15 – 44 years of age, 903 were 45 years and
still see buyers from Ontario, British
older, and 668 were 14 years and younger.3
Columbia, the United States and Europe.
Residential home sales breakdown
job opportunities for skilled workers in
Halifax’s economic growth is creating
The year began with an extremely strong seller’s market.
hospitality, technology, financial services
The average home price grew by 23 per cent year-over-
and life sciences. ”
year, and properties quickly sold over asking, typically receiving multiple offers. In January, investor purchases
10 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
Donna Harding, license partner Engel & Völkers Nova Scotia 3
Halifaxpartnership.com, June 14, 2022.
444 Piggott Avenue Engel & Völkers Halifax
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 11
JAN
FEB
$4,300,000
0
0
0
RESIDENTIAL CLASS
$1, 2 23,0 0 0
$1, 370,0 0 0
CONDOMINIUM CLASS
$1, 28 8,4 9 9
0
RESIDENTIAL CLASS
1
0
CONDOMINIUM CLASS
0
0
14
11
3
0
RESIDENTIAL CLASS
0
1
CONDOMINIUM CLASS
0
0
14
15
4
1
AV ER AG E SO LD PR ICE
$4M+ RESIDENTIAL CLASS CONDOMINIUM CLASS
$1 – 3.99M
T O TA L U N I T S S O L D
$4M+
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
NEW LISTINGS
$4M+
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
12 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
MAR
APR
M AY
JUN
$4,500,000
0
0
0
0
0
0
0
$ 1,10 0 , 0 0 0
$1, 25 0,771
$1, 2 9 0, 20 2
$1, 3 8 5,527
$ 1, 2 11, 0 0 0
$1,4 6 2,70 0
$1,415,9 9 9
$1, 26 2,5 0 0
1
0
0
0
0
0
0
0
35
28
36
28
2
7
1
2
0
0
2
3
0
0
0
0
28
27
44
54
3
7
2
1
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 13
point, likely related to lock down restrictions. As lock down restrictions lifted, activity increased in both listings and sales. The $4 million-plus market is budding with one sale in January and one in March.
Market outlook Halifax continues to operate in seller’s market conditions as it has been for the past 24 months. Engel & Völkers forecasts a gradual shift towards slower price increases if second-
The February market had dangerously low inventory and
quarter trends hold into the latter part of the year. Though the
only 16 new listings in the $1 – 3.99 million segment. Inside
number of offers will likely decrease, move-in ready properties
the HRM, the average price for a residential property from
and those in ideal locations will still see multiple offers.
$1 – 3.99 million was $1,290,202 while condos came in at $1,415,999 — the condo average skewing higher due to fewer units being traded. Across Nova Scotia, February represented the lowest number of new listings in over 15 years, and active listings reached an over three-decade low. Migration continued to drive demand, and supply did not keep up. In May, the benchmark price for a singlefamily home in Nova Scotia reached $410,300, increasing by 31 per cent year-over-year. While units sold slowed across other metropolitan cities in spring, the typical spring market arrived in Halifax, but later than usual. In June, new listings hit a high of 55 in
As Halifax’s market continues to climb, Gen Z is finding it extremely difficult to make its way into the market. With a high volume of weddings set to take place in 2022 and 2023, there may be an increase in the number of firsttime buyers who purchase after marriage. Parents are increasingly helping their children buy homes, and this trend is expected to continue as market values climb. Interprovincial and international migration are sustaining, with growing interest from boomers looking to cash out their homes and retire in Nova Scotia. Other interprovincial buyers are simply looking for secondary vacation homes.
the $1 – 3.99 million category and three in the $4 million
Continued rate hikes will mostly affect the conventional
plus range. Even with the uptick in new listings in the
market, especially first-time homebuyers. It is not expected
$1 – 3.99 million range, average sold price peaked at
to affect the premium or luxury market — excluding buying
$1,385,527 for residential class properties.
multi-unit properties. Premium buyers usually pay with cash or take on a smaller mortgage than conventional buyers in the market.
14 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
N EI G H B O U R H O O D S TO WATCH
Halifax
9
3
8 4
2
1
6
5
7
$4M+
$1–3.99M
UP-AND-COMING
1. Chester
4. Bedford
7. Yarmouth
2. Mahone Bay
5. Lunenburg
8. Windsor
3. Wolfville
6. South End Halifax
9. Cape Breton
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 15
Montréal Average sold price for condos in the $1 – 3.99 million range climbs 14% from June 2021. Welcome to Montréal The past two years have accelerated Montréal’s real estate
market slowed, allowing inventory levels to replenish, though price levels remained stable.
market growth, establishing a new price level across the
The average sale price for homes in the $1 – 3.99 million
marketplace after steadily climbing since the year 2000,
category peaked in February, hitting $1,435,229. Though
and double-digit price growth since 2020. The beginning
sales began to slow, historically low inventory levels
of 2022 represented the last leg of the race, which wound
coupled with demand continued to push prices up and
down in tandem with each announcement of increased
seller’s market conditions remained.
interest rates. However, by mid-year, the number of homes traded for over $1 million grew by 112 per cent since 2020. A market balancing process is underway and the journey
March was a notable month for the $4 million-plus category. One condo sale was made in this category for $7,903,000. Three residential homes were sold that
towards normalization has begun. This is good news for Montréal buyers, who were experiencing fatigue due to multiple offer situations, low inventory levels and fastpaced price growth. Compared to other capital cities in Canada, Montréal’s premium inventory is largely undervalued and therefore affordable, making it a smart buy for blue-chip real estate investors. The first half of the year wrapped up seeing the average home price sitting at $1,486,659 for the $1 – 3.99 million category and $4,275,000 for those over $4 million.
Residential Home Sales Breakdown The January market in Montréal started off strong — low inventory led to multiple offer situations across the marketplace and upward pressure on prices. Property sales for homes over $700,000 grew by 22 per cent year-over-year. As higher interest rates were introduced, the number of units being traded in the 16 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
“ Montréal is an island and luxury home inventory within the city is limited. Over the past two years, record sale after record sale was made in the premium home segment. Supply is now replenishing and the market is normalizing, which is a good thing for Montréal real estate. ” Patrice Groleau, license partner Engel & Völkers Montréal
1111 Avenue Atwater Engel & Völkers Montréal
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 17
JAN
FEB
RESIDENTIAL CLASS
$4,800,000
$ 6 , 9 8 7, 5 0 0
CONDOMINIUM CLASS
$4,450,000
$4,080,456
RESIDENTIAL CLASS
$1,425,619
$1,5 61,6 07
CONDOMINIUM CLASS
$1, 2 91,6 62
$1, 3 0 8,8 5 0
RESIDENTIAL CLASS
2
2
CONDOMINIUM CLASS
2
2
RESIDENTIAL CLASS
86
175
CONDOMINIUM CLASS
35
50
RESIDENTIAL CLASS
7
13
CONDOMINIUM CLASS
0
3
225
297
83
94
AV ER AG E SO LD PR ICE
$4M+
$1 – 3.99M
T O TA L U N I T S S O L D
$4M+
$1 – 3.99M
NEW LISTINGS
$4M+
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
18 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
MAR
APR
M AY
JUN
$5,265,000
$ 6,731, 25 0
$6,233,333
$4,425,000
$ 7, 9 0 3 , 0 0 0
$0
$8,500,000
$ 4 ,12 5 , 0 0 0
$ 1 , 5 0 7,1 0 4
$1,4 82,5 8 8
$ 1, 5 2 4 ,141
$1,423,0 5 8
$1, 2 9 6, 3 4 9
$1, 3 4 9,5 4 4
$1,4 8 3,781
$1,5 5 0, 26 0
3
4
3
2
1
0
1
2
220
244
225
197
60
56
42
47
13
9
19
17
4
2
16
4
404
408
526
438
117
125
183
139
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 19
same month in this category, averaging $5,265,000. Also
June. The $4 million-plus category continued consistently
notable, the number of new listings in the $1 million-
with four units sold each month from January through June.
plus category jumped by 33 per cent, but remained at a historic low in the region. Typically, the number of homes traded jumps from March to April, but this April was the least active since 2017. Though the number of units sold was down compared to last year, prices kept climbing due to constrained inventory — even with a record 30,000 housing units built in Montréal since last year. In the premium market, the number of units sold for homes priced over $1 million only grew by 20 units month-over-month. In the $4 million-plus
Market Outlook Market normalization will continue for the remainder of 2022, with buyers taking a beat to enjoy summer and travel. Activity is on track to return in the fall at a balanced pace, leaving behind the leisurely tone of summer. With this, buyers will once again have time to see properties and buy with due diligence, while sellers will be able to list their homes with the confidence that they will be able to find a suitable replacement.
category, there were four units sold consistently each
International buyers are back in the market coming from
month from January through April.
Germany, China, India and Ukraine as well as French-
In May, home prices adjusted, averaging $576,000 as the number of residential units sold dipped by one per cent in
speaking countries like Belgium, Ivory Coast, France, Lebanon, Luxembourg, Monaco and Switzerland.
the conventional market. The condo market held its value,
New market prices have been established, and while
gaining 12 per cent year-over-year, with a median price
these may dip in some areas, prices are on track to keep
of $410,000. International buyers began returning to the
growing for the most in-demand property types and
market this month, as many local buyers decided to wait.
neighbourhoods. Montréal is still affordable compared
After hitting a high of 709 in May, the number of new listings priced between $1 – 3.99 million decreased by 19 per cent in June. Condos in the $1 – 3.99 million range sold for an average price of $1,550,260, which is 2022’s annual high thus far and represents a 14 per cent increase from last 20 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
to other major Canadian markets, which continues to be a point of attraction for many. Rising interest rates have changed the conventional market, but premium buyers who tend to pay for homes up front rather than take a mortgage will not be affected.
N EI G H B O U R H O O D S TO WATCH
Montréal
7
6 5 3 9
4 2
1
8
$4M+
$1–3.99M
UP-AND-COMING
1. Westmount
4. Le Plateau-Mount Royal
7. East Island | Hochelaga Maisonneuve
2. Town of Mount Royal
5. Rosemont
8. Lasalle
3. Outremont
6. Villeray | Ahuntsic
9. Saint-Laurent
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 21
Ottawa Transactions of homes priced over $1 million have doubled to 18% from 9% last year. Welcome to Ottawa
Residential Home Sales Breakdown
Ottawa’s real estate market has taken off since 2020.
The year began with the semi-rural and rural prices
Growth was expected to happen — the region’s home
climbing faster than urban prices in the Ottawa region.
prices were undervalued compared to Toronto and
January’s condo market suffered from low supply in
Vancouver — but the pandemic certainly accelerated
both the conventional and premium markets. Across all
the process. In 2020, homes priced over $1 million
property types and luxury price brackets, the number
accounted for only four per cent of the market. A
of transactions outpaced the number of new listings.
COVID buying frenzy in Canada’s capital has led to the highest escalation of home prices on record. As a result, the $1 – 3.99 million segment grew to make up
In February, new listings grew by 133 per cent in the $1 – 3.99 million range and units sold jumped by 132
nine per cent of the market in 2021, doubling in 2022 to 18 per cent. Demand is driven by Ottawa’s stable work industries and interprovincial migration. While Ottawa is often thought of as a government town, it is home to more than 1,500 advanced technology companies which employ more than 65,000 people. These high earners, and those migrating from more expensive markets after cashing in, have driven consistent price growth. The year began strong, though price growth leveled off in the following months. After reaching a high in March, home sales plateaued, signaling the arrival of
“ Working with an experienced advisor who knows the future development plans and local strengths of your desired area is key to making the best decisions. As the market is returning to normal seasonal
normal-leaning market conditions, which held steady
patterns, someone with on-the-ground
through to June. The average sold price landed
insight will help ensure your investment is
on $1,336,028 in the $1 – 3.99 million range and $4,600,000 in the over $4 million segment.
the right move long term. ” John King, license partner Engel & Völkers Ottawa Central
22 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
40 Boteler Street Engel & Völkers Ottawa Central
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 23
JAN
FEB
RESIDENTIAL CLASS
0
0
CONDOMINIUM CLASS
0
0
RESIDENTIAL CLASS
$1,320, 23 8
$1, 2 9 5,519
CONDOMINIUM CLASS
$ 2 , 2 2 7, 5 0 0
$1, 2 9 5,5 01
RESIDENTIAL CLASS
0
0
CONDOMINIUM CLASS
0
0
102
239
2
2
RESIDENTIAL CLASS
1
2
CONDOMINIUM CLASS
0
0
13
31
2
4
AV ER AG E SO LD PR ICE
$4M+
$1 – 3.99M
T O TA L U N I T S S O L D
$4M+
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
NEW LISTINGS
$4M+
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
24 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
MAR
APR
M AY
JUN
$4,090,000
0
0
$4,600,000
0
0
0
0
$1, 3 32, 3 42
$1, 310, 213
$ 1 , 3 0 7, 5 5 3
$1, 3 3 6,0 28
$1, 278, 25 0
$1, 270,075
$1,5 0 0, 3 47
0
1
0
0
2
0
0
0
0
324
273
269
171
4
4
10
0
1
2
3
3
1
0
0
1
104
162
221
327
8
7
5
13
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 25
per cent month-over-month from 104 to 241. Units sold
respectively. This value landed on $1,336,028 as the first
in this price point peaked at 328 in March after a 36
half of the year came to a close. From 2020 to 2022,
per cent month-over-month climb. March also ushered
Ottawa has seen a 53 per cent increase in the average
a market shift influenced by looming interest rate hikes
home price, pushing more properties into the $1 – 3.99
due to inflation and rising global instability as war broke
million segment. The plateau in this price point signals a
out in Ukraine.
return to normal market conditions.
April saw a 16 per cent month-over-month decrease in
Market Outlook
units sold priced between $1 – 3.99 million. This was mirrored in the conventional market, where units sold decreased by 21 per cent. Though the sales volume for homes priced between $1 – 3.99 million remained almost the same in May as April, it dropped by 39 per cent in June. Across the entire market, the sales volume saw a 29 per cent month-over-month decrease, making
After two years of consistent record-breaking price growth and shrinking inventory, the Ottawa market is returning to a more balanced pace. Though new listings have increased, the market only has two months of inventory available for sale. This means Ottawa is still a strong seller’s market, but the conditions are not as
this the slowest June in 10 years. In Ottawa, the $4
extreme as previous years.
million-plus segment is an emerging category, with 18
Houses are sitting on the market longer than they had
new listings and three units sold across all property types in the first half of the year. Throughout the entire first half of the year, the average
in 2020 and 2021, and the interest rate hikes have caused homebuyers to re-think their budget. However, even if prices hold or drop, many homeowners have
sold price in the $1 – 3.99 million segment stayed
seen a significant equity increase in their properties.
relatively stable. It peaked in January at $1,337,685
This summer looks to be slower than recent years as
before seeing a three per cent month-over-month decline to $1,295,519 in February and climbed back up by nearly three per cent to $1,331,682 in March. For April and May, the average sold price sat at $1,309,633 and $1,314,463
26 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
many potential buyers and sellers enjoy a return to travel. The market will continue to balance and return to seasonal sales patterns for the remainder of 2022.
N EI G H B O U R H O O D S TO WATCH
Ottawa
1 3 4 9
7
6
8 5
2
$4M+
$1–3.99M
UP-AND-COMING
1. Rockcliffe
4. McKellar Park
7. Carlington
2. Manotick
5. Glebe
8. Golden Triangle
3. Westboro
6. Rothwell Heights
9. Britannia
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 27
Toronto Average sold price for condos in the $1 – 3.99 million range climbs 4% from June 2021. Welcome to Toronto Toronto’s market has seen a meteoric rise in the past 25 years — the average sold price climbed by 453 per
3.99 million bracket, where there were 322 new condo listings and 169 units sold. The $4 million-plus condo category saw 11 new condo listings and two units sold.
cent since 1996. The Greater Toronto Area (GTA) is one
The market began to cool in February, with a 62 per
of the fastest-growing cities in North America. As the
cent month-over-month increase in new listings across
Canadian hub for many prominent global companies,
all property types in the $1 – 3.99 million segment.
demand for real estate is constant. Even still, Toronto’s
Similarly, the $4 million-plus range saw a 52 per cent
density looks different from other global cities — the
month-over-month jump in new listings for all property
downtown core has single-family homes. With demand
types combined. For homes priced between $1 – 3.99
outpacing inventory, the average detached home price
million, units sold climbed 66 per cent for residential
surpassed the $2 million mark in 2022.
properties and 57 per cent for condos. The average
At the end of March, the Ontario government implemented new legislation hoping to crack down on housing speculators and level off exponential price growth, not addressing the core issue of low supply. The foreign homebuyers tax grew to 20 per cent and a loophole allowing foreign students and workers to receive a tax rebate on real estate purchases was closed. Shortly after, the Bank of Canada increased interest
“ With rising interest rates, the Toronto
rates. As a result, Toronto has seen a decline in units
market has shifted from the frenetic pace
sold. Currently, the average sold price is $1,524,244 in
we’ve seen in the last number of years to
the $1 – 3.99 million range and $5,263,743 in the $4 million-plus bracket.
Residential Home Sales Breakdown January’s condo market was the tightest seen in 20 years with the average price hitting $710,087.4 Pressure from the conventional market trickled up to the $1 –
28 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
a more balanced market. Homebuyers are in a better position to negotiate as they are competing with fewer offers, especially in the $1 – 3.99 million range. ” Anita Springate-Renaud, license partner Engel & Völkers Toronto Central 4
Market Watch 2022, TRREB
161 Roehampton Avenue Engel & Völkers Toronto Central
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 29
JAN
FEB
RESIDENTIAL CLASS
$ 5 , 6 7 0 ,15 0
$ 5 ,74 8 , 9 9 5
CONDOMINIUM CLASS
$ 4 , 5 4 7, 5 0 0
$5,300,000
RESIDENTIAL CLASS
$ 1 , 6 8 7, 74 5
$1,78 3,9 23
CONDOMINIUM CLASS
$1,3 5 3,6 01
$ 1, 3 7 5 ,18 3
20
48
2
5
RESIDENTIAL CLASS
698
1,15 9
CONDOMINIUM CLASS
169
266
RESIDENTIAL CLASS
64
102
CONDOMINIUM CLASS
11
12
RESIDENTIAL CLASS
835
1,4 6 0
CONDOMINIUM CLASS
322
419
AV ER AG E SO LD PR ICE
$4M+
$1 – 3.99M
T O TA L U N I T S S O L D
$4M+ RESIDENTIAL CLASS CONDOMINIUM CLASS
$1 – 3.99M
NEW LISTINGS
$4M+
$1 – 3.99M
30 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
MAR
APR
M AY
JUN
$5,309,875
$ 5,414,9 0 8
$5,680,383
$ 5 , 2 6 3 ,74 3
$ 5 , 5 0 9 ,15 5
$4,600,000
$6,042,500
0
$ 1, 7 0 0 ,114
$1,715,79 9
$ 1 , 6 8 7, 4 2 5
$1,6 3 3, 2 24
$1, 32 9,8 5 4
$1,4 4 0,9 37
$1, 3 8 5,427
$1,415, 26 3
51
54
47
35
5
3
2
0
1,472
1,17 0
1,0 9 8
804
329
266
197
182
113
110
174
111
24
16
14
17
2,084
1,9 5 6
2,321
1,9 28
565
538
575
554
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 31
sold price grew by only two per cent for condos and
In June, the average price for residential class properties
six per cent for residential properties after years of
priced $1 – 3.99 million hit a low of $1,633,224. The $4
record-breaking gains.
million-plus segment also hit a low with an average sold
March brought the first signs of market correction. In the $1 – 3.99 million range, the average sold price decreased by three per cent for condos and five per cent for residential properties month-over-month. Homes priced over $4 million saw a month-over-month dip of eight per cent for residential properties and a
price of $5,263,743. While new listings dipped slightly from May, the number increased by 115 per cent for homes priced between $1 – 3.99 million and 71 per cent for homes priced over $4 million compared to January.
Market Outlook
bump of four per cent for condos.
Engel & Völkers forecasts normalization will continue
Market correction continued into May as the average
middle market. Increased interest rates are impacting
price in the $1 – 3.99 million category saw a month-overmonth drop of two per cent for residential properties and almost four per cent for condos. Interest rate hikes impacted units sold in this range — compared to the previous month, transactions fell by 26 per cent for condos and six per cent for residential properties. New listings peaked in May in this category, growing monthover-month by 19 per cent for residential properties and seven per cent for condos. Homes priced over $4 million were not affected as buyers tend to purchase with cash. For residential properties, the average sold price increased by five per cent in this category. Condos priced over $4 million peaked at $6,042,500 in May, up 31 per cent from April.
32 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
especially in the $1 – 3.99 million range and the affordability and buyer sentiment. Rents in the region are on the rise as some prospective first-time homebuyers wait instead. This trend will hold steady through the second half of the year. Presently, nearly four per cent of all homes and seven per cent of condos are owned by non-residents in Toronto. Although there has been a discussion of a potential ban on foreign buyers, no legislation has been enacted yet.
N EI G H B O U R H O O D S TO WATCH
Toronto
1 3
2
6
8
7
4
5
9
$4M+
$1–3.99M
UP-AND-COMING
1. St. Andrews
4. Cabbagetown
7. Birch Cliff
2. Annex
5. High Park
8. The Pocket
3. Leaside
6. Playter Estates
9. Long Branch
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 33
Vancouver The $1 million-plus market is balancing with three months of inventory currently available. Welcome to Vancouver Owning a property in Vancouver is similar to owning gold — its value is stable. This proves to be true as the market balances from a red-hot ride during COVID. While sales volume is decreasing, prices remain stable. The current market normalization trend emerged following an interest rate hike. As demand waned, a seasonal bump in new listings helped replenish inventory. Market activity was consistent, but at a
The benchmark price for a detached home in Metro Vancouver hit nearly $2 million, a 28 per cent price rise compared to 2021. From last year, the average price for attached homes grew by 24 per cent to $1,029,500 and condo prices grew by 14 per cent to $775,700. While prices grew, the number of sales dropped year-over-year. In February, the market was undersupplied. Fraser Valley saw a record volume of new listings, establishing
lower volume, and prices held as demand continued to outweigh supply. Buyers are largely local, with some international interest. Metro Vancouver’s population is currently 2,632,000 and is climbing by one per cent per year. The United Nations projects it will reach 2,957,000 by 2035. Suburban and exurban areas are still popular due to affordability, but prices have decreased from their peak. Across Vancouver, the average sale price
“ The City of Vancouver needs to create new models for housing ownership
hit $1,732,518 in the $1 – 3.99 million range and
without attempting to artificially drive
$5,605,993 for over $4 million.
prices down with taxes on owners and
Residential Home Sales Breakdown The year began with city council unanimously voting to raise the Empty Homes Tax from three per cent to five per cent this coming year. This means more than double the number of audits are needed per year to ensure compliance, increasing from 9,000 to 20,000. 34 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
buyers. This could look like government agencies and municipalities cooperating with developers and re-thinking ownership models, zoning and financing options. ” Andrew Carros, license partner Engel & Völkers Vancouver
2883 Point Grey Road Engel & Völkers Vancouver
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 35
JAN
FEB
RESIDENTIAL CLASS
$6,303,761
$ 5, 373,416
CONDOMINIUM CLASS
$4,855,333
$5,970,667
RESIDENTIAL CLASS
$ 2 ,117, 6 8 7
$ 2 ,1 2 7, 2 4 0
CONDOMINIUM CLASS
$1,3 8 6,9 67
$1,4 3 5,427
40
66
3
6
RESIDENTIAL CLASS
552
915
CONDOMINIUM CLASS
375
648
180
220
20
29
1,0 0 2
1,6 41
834
915
AV ER AG E SO LD PR ICE
$4M+
$1 – 3.99M
T O TA L U N I T S S O L D
$4M+ RESIDENTIAL CLASS CONDOMINIUM CLASS
$1 – 3.99M
NEW LISTINGS
$4M+ RESIDENTIAL CLASS CONDOMINIUM CLASS
$1 – 3.99M RESIDENTIAL CLASS CONDOMINIUM CLASS
36 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
MAR
APR
M AY
JUN
$5,890,533
$6,026,938
$ 5 , 8 6 2 ,12 3
$5,482,854
$ 6 ,119 , 5 6 7
$5,685,333
$5,226,750
$6,640,360
$ 2 ,12 9 , 6 5 9
$ 2 ,113 ,12 7
$2,066,201
$1,9 5 8,4 9 3
$1, 3 9 5,6 4 8
$ 1, 4 2 0 ,13 0
$ 1 , 4 17, 9 7 3
$1,410,725
71
69
58
42
12
3
6
5
118 1
840
691
581
788
620
505
408
269
2 74
242
218
29
36
31
33
2,026
1,8 4 8
1,9 23
1,59 9
1,13 1
1,0 52
1,18 3
904
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 37
itself as a destination for buyers squeezed out of Vancouver’s low-inventory market. Total listings in the conventional market were down year-over-year, though they rose by 31 per cent month-over-month. For all property types, new listings grew by 39 per cent in the $1 – 3.99 million range and 25 per cent in the $4 million-plus market. By March, speculation of an interest rate hike was in the air. This took hold in April, curbing demand and slowing price growth. Conventional market data showed double-digit price dips in May for exurbs like Surrey and Langley, areas that saw swift price growth at the height of the COVID real estate rush. May home sales were down by 22 per cent since last year and nine per cent from April. As summer approached, units sold, new listings and average sold price all decreased month-over-month. Average sold price shrunk by five per cent for residential class properties in the $1 – 3.99 million range, reaching an annual low of $1,958,493. For condos in this price point, average sold price was stable from January to June, fluctuating by a few percentage points each month. Though the sales volume across all price categories is down, units sold is up 136 per cent yearover-year for condos priced between $1 – 3.99 million.
38 Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022
Market Outlook Buyers and sellers will likely pause to enjoy the summer. Engel & Völkers projects markets will be stable and continue to balance throughout the remainder of the year. The number units sold is expected to decline steadily. Prices may dip in the premium markets temporarily, but they should ultimately hold their value through this transition. Working with expert real estate advisors to correctly stage, price, and deal make is proving to be an asset in these moving market conditions. The moment ‘wait and see’ buyers return, the market will accelerate again simply because of the lack of supply to meet demand. There is a high potential for government interference, inclusive of new recommendations from the BC Financial Services Authority (BCFSA) around how long sellers must wait to sell a property before reviewing offers. There are also talks of a potential buyer rescission period of three business days after an offer is accepted on all non-commercial properties. If these regulations are passed, there will be a transitionary period which could cause buyers and sellers to hesitate or pause. This could contribute to further disruption within the market.
N EI G H B O U R H O O D S TO WATCH
Vancouver
2 6 4
1 3
8
9
5
7
$4M+
$1–3.99M
UP-AND-COMING
1. West Point Grey
4. Grandview
7. Tsawwassen
2. West Vancouver
5. Mount Pleasant
8. Brentwood
3. Shaughnessy
6. North Vancouver
9. Port Moody
Engel & Völkers Canadian Luxury Real Estate Market Report Mid-Year 2022 39
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