2024 Mid-Year Canadian Luxury Real Estate Market Report
MID-YEAR 2024
Luxury Real Estate Market Report
102 2015 Beach Avenue Engel & Völkers Vancouver
Introduction
Engel & Völkers welcomes you to its 2024 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. Homes over $1 million throughout the first half of the year, as listed on the MLS, were evaluated. The result is a residential property and market report for Halifax, Ottawa, Toronto and Vancouver.
National Overview
Engel & Völkers reports Canada’s premium metro markets, in Halifax, Ottawa, Toronto and Vancouver, are making gains and defying market trends. Misconceptions about The Prohibition on the Purchase of Residential Property by Non-Canadians Act of January 1, 2023, known as “Canada’s foreign buyer ban”, are affecting the country’s welcoming image and disrupting condo market dynamics, especially in the new construction sector. Meanwhile, the Canadian real estate market is seeing a decline in domestic investors, and condos face sluggish sales as buyers await rate relief.
As we enter the second half of 2024, these are the top national trends affecting Canada’s premium housing markets.
Canadian luxury home sales defy market trends
Luxury sales of detached homes continue to show strong growth in major Canadian cities, bucking trends in the conventional market. Contrary to common belief, rising interest rates have a limited impact on the luxury market, as many buyers pay in cash. In Toronto, detached sales prices of homes valued at over $8 million grew by 4.73 per cent from January to June this year compared to last. Halifax saw a five per cent increase in sales for units over $1 million in the first half of 2024. From January to June, home prices in Ottawa grew eight per cent for residential homes between $1 - 1.99 million. In Vancouver, despite more listings and fewer units sold, the average sales price of residential homes valued between $2 - 3.99 million grew by 4.7 per cent from January to June.
8 Colborne Street PH 2701
Engel & Völkers Toronto Central
Foreign buyer ban misconceptions hamper market dynamics and Canada’s welcoming brand
Misconceptions abroad surrounding Canada’s foreign buyer ban are damaging Canada’s reputation as a welcoming country for business. There is also a misperception that the law applies to all of Canada, rather than solely to Census Metropolitan Areas (CMAs) and Census Agglomerations (CAs). CMAs must have a total population of at least 100,000, with 50,000 or more living in the core, while CAs must have a population of at least 10,000. The Prohibition on the Purchase of Residential Property by Non-Canadians Act defines residential property as buildings with three dwelling units or less, including semi-detached houses and condominium units. It does not prohibit the purchase of larger buildings with four or more dwelling units.
4.73%
price growth for detached homes
$8 million and higher in Toronto
8 Colborne Street PH 2701 Engel & Völkers Toronto Central
8 Colborne Street PH 2701 Engel & Völkers Toronto Central
Canadian real estate market sees decline in domestic investors
Engel & Völkers reports homes are now primarily being bought and sold for traditional reasons, like relocating, upsizing and downsizing. Domestic investors have largely left the market in tandem with the decrease in incentives for investing in real estate and the increase in interest rates. It will be interesting to see how many residential home purchases were made by investors the next time the Bank of Canada releases this data. To compare, a Bank of Canada report released in fall 2023 revealed that 30 per cent of residential home purchases in the first three months of 2023 were made by investors, not people who intended to occupy those homes. The figure was less than 20 per cent in 2014.
Condos face sluggish sales as buyers await rate relief
Condos, traditionally entry-level homes for first-time buyers, are experiencing sluggish sales as potential buyers hold out for interest rate relief. The lack of competition for residential property classes is creating a situation where buyers who would typically purchase condos are now vying for residential homes. Engel & Völkers anticipates that when the competition for residential properties becomes too intense, buyers will return to competing for purchasing condos again.
Demographically speaking, millennials, a cohort now focused on building families and careers, are finding one and one-plus bedroom condos insufficient. Similarly, boomers, the other demographic that typically downsizes into condos, are continuing to choose to age in place due current condo inventory being high priced while failing to meet their size needs.
Halifax
Halifax saw a 5% increase in units sold priced over $1 million in the first half of 2024 compared to last year.
Welcome to Halifax
The Halifax market showed brisk activity from January to March, before contracting in April 2024. During the period, homes inside the core and around the Halifax Peninsula sold quickly, in multiple offers, especially homes under $700,000. Sales outside the city core were slow-paced, particularly homes over $1 million.
Engel & Völkers saw the most competition for homes priced under $700,000, buoyed by continued population growth. Between July 1, 2022, and July 1, 2023, Nova Scotia’s population grew by 3.24 per cent (33,249), reaching 1,058,694 as of July 1, 2023. Cape Breton County had the fastest growth at 6.62 per cent, followed by Halifax County at 4.07 per cent.¹
Contrary to other metropolitan markets in Canada, January 2024 started in a seller’s market position. Buyer demand was there, while inventory was not increasing. A price increase was predicted for the spring.
In February, 13 units priced over $1 million were sold, an increase of one compared to the previous month. The average price for residential units was $1,203,536, and for condos, it was $1,425,000. There were 32 new listings valued at over $1 million, representing the annual low thus far.
Listings over $1 million in March 2024 grew to 50. This uptick in listings is credited to seasonal trends and the anticipation of an interest rate decrease in June. The number of homes
¹ Statistics Canada, March 27, 2024
² Association for REALTORS® in Nova Scotia, April 2024.
sold across the marketplace in March was 792, an 18 per cent increase compared to the previous month. Of these sales, 14 units sold were over $1 million, and two were residential condo units. Overall, March home sales were 25.2 per cent below the five-year average and 13 per cent below the 10year average.²
“The foreign buyer ban has greatly impacted Halifax’s luxury market, especially condos and HRM waterfront properties. There is a misperception by buyers outside of Canada that it applies to the entire country rather than Census Metropolitan Areas and Census Agglomerations.”
Donna Harding License Partner Engel & Völkers Nova Scotia
Units Sold
In April, Halifax’s market was still considered a seller’s market, however home sales stalled. Buyers stood aside, waiting for the interest rate to drop, but the number of listings rose. A major factor or contributing to the stall was the cost-of-living crisis, which weighed on buyers. Despite this, there was a moderate gain of 9.4 per cent in sales in the conventional market compared to April 2023. In the $1 million and over market, 30 homes were sold, doubling compared to March 2024.
In May, this pace was sustained, with 30 homes sold in the over $1 million market. This was expected to be higher; however, many buyers who typically showed interest did not. Months of inventory remained low in Halifax, hovering around two for under $1 million and 2.5 for homes over $1 million.
June’s interest rate drop of 25 basis points introduced new confidence to the market, but conditions did not change in any marked way compared to the previous months.
Average Sold Price
Overall, Halifax saw a 14 per cent increase in new listings from January to June compared to the same period in 2023. Comparatively, Halifax saw a five per cent increase in the number of units sold priced over $1 million in the first half of 2024 compared to the same period last year.
Engel & Völkers is reporting that the downturn in Ontario and British Columbia is affecting Halifax luxury real estate. Previously, out-of-province buyers would buy in Halifax first, and then sell their homes. In the first half of 2024, this shifted, seeing buyers sell first to avoid risking being unable to sell on time. The Prohibition on the Purchase of Residential Property by Non-Canadians Act has affected the market above $1 million in Halifax. This act was set to expire on January 1, 2025, but has now been extended to January 1, 2027.
Property Spotlight
1173 South Park Street
Meghan Laing . Engel & Völkers Nova Scotia Halifax
1173 South Park Street stands out due to its historical significance and architectural elegance, representing a well-preserved example of period architecture in Halifax.
This Second Empire-style residence was sold on May 2, 2024 for $1,800,000. The home exudes the timeless charm of a 19th-century masterpiece, seamlessly blended with modern refinements. Every inch of this home has been meticulously restored—a true labour of love that emanates character and grace.
This home required a special buyer who appreciates its unique value compared to more modern renovations at similar price points. The sale price is consistent with, and a good representation of, current conditions in Halifax.
This property is a paragon of grandeur and style, a true rarity in its impeccably restored condition. From the elongated, stately windows and intricate mouldings to the Corinthian columns and grand staircase, this home is nothing short of a spectacle.
Advisor’s Commentary
This home has that ‘love factor’ as soon as you walk through the door. It has been meticulously restored, maintaining all its architectural charm while upgrading to more efficient systems. The spaces are elegant, and this home was a dream to list and show, from the parlour to the family room.
Halifax is a growing and vibrant city, and real estate prices are continuing to climb to meet increasing demand. Its affordability compared to larger Canadian cities like Toronto and Vancouver is attracting young people, who are drawn by the city’s appealing lifestyle and value.
The city’s economic development, cultural attractions, and educational institutions are key factors. Halifax offers a high quality of life with access to natural landscapes, a rich history, and a fast-growing food and arts scene. The market remains competitive with low inventory and sustained demand, making this an exciting time.
The high-end real estate market on the Halifax Peninsula is currently experiencing a seller’s market, primarily driven by low inventory and sustained demand.
Engel & Völkers Canada predicts Halifax homes over $1 million will see a 6% price increase by year-end.
Market Outlook
Due to the extreme lack of supply, Downtown Halifax continues to be considered a seller’s market. Buyers and sellers coming to Halifax from out of province should know that their budgets may not suffice to get them what they expect. Listings are available for incoming buyers, but working with a market-savvy professional is crucial to ascertain appropriate pricing. Outside the city core, inventory has
lingered due to high interest rates and a lack of foreign buyers in the market, who buy recreational properties in Halifax.
Up to four incremental interest rate drops are anticipated. Many buyers will need to wait for rates to drop further to qualify for a mortgage. Those who can afford to lock in current prices will benefit from rate declines in the long run.
226 Crandall Road Engel & Völkers Nova Scotia
NEIGHBOURHOOD RADAR
Halifax
“ The Halifax market has picked up significantly, with multiple offers across all price points, especially for properties priced at $700,000 and below, depending on the area.”
Donna Harding License Partner, Engel & Völkers Nova Scotia
West End
North End
Downtown Dartmouth
Bedford
Ottawa
From January to June, home prices in Ottawa grew 8% for residential homes priced between $1 - 1.99 million.
Welcome to Ottawa
In the first half of 2024, transactions moved through the Ottawa market at a lethargic pace. Inventory levels rose, finishing with approximately 2.5 months at the end of June. Home prices in Ottawa grew eight per cent for residential homes priced between $1 - 1.99 million, and remained relatively flat year-over-year in the conventional market. This is a remarkable outcome considering the downturn in the number of units sold since 2022.
Ottawa home sales rose year-over-year in January 2024, but the market remained quiet as buyers continued to wait and see. There was an uptick in showings, but this did not result in sales. In the conventional market, January 2024 sales were 10.7 per cent below the five-year average and 3.9 per cent below the 10-year average.3 Out of 629 units sold, 48 were priced above $1 million.
Home sales and prices in February 2024 increased by 15.2 per cent compared to February 2023.4 Buyers and sellers made moves in the market, but a lack of suitable supply constrained them. Only 47 new residential-class listings from $1 -1.99 million came to the market, while 59 were sold, for an average sold price of $1,259,625.
Ottawa’s real estate market continued its ascent in April 2024, with home sales and prices rising, signalling heightened confidence among buyers and sellers. The average property value across all price points in Ottawa reached
3Ottawa Real Estate Board, February 2024
4 Ottawa Real Estate Board, March 2024
5 Ottawa Real Estate Board, May 2024
6 Ottawa Real Estate Board, May 2024
$643,700, a 1.6 per cent increase from April 2023.5 The benchmark price for single-family homes hit $727,700, up 1.6 per cent from the year before.6 Homes priced between $1 million and $1.99 million averaged $1,278,263, while those in the $2 - 3.99 million range averaged $2,703,464.
“We advise buyers with mortgage approvals at current interest rates to lock in a home price now and ride the rates down. At current inventory levels, qualified buyers have more choice and power. For sellers, correctly priced homes still sell in a timely manner, but they must be priced to meet real-time market conditions.”
John King License Partner Engel & Völkers Ottawa
Units Sold
The $2 million and higher luxury price point saw more new listings than in previous years, making the first half of the year an exceptional time for the “move-up” market, considering the amount of choice and market conditions favouring buyers. Engel & Völkers is reporting a larger pool of affluent buyers purchasing homes over $2 million. Historically, this price segment was dominated by buyers from government industries. A new set of moneyed entrepreneurs are now driving demand at this price point, gravitating towards neighbourhoods like Manotick, Westboro-McKellar Park and The Glebe. These buyers are seeking out neighbourhood lifestyles with walkability as opposed to privacy.
May is normally Ottawa’s biggest sales month. However, in the first half of 2024, sales were the lowest in five years. Home prices in the capital grew slightly in May 2024, but many buyers stood aside and waited for the Bank of Canada’s expected June interest rate announcement. New listings increased, indicating a return in seller confidence buoyed by
the anticipated rate drop. Though seller activity rose, buyer demand failed to keep pace. In the $1 million-plus market, 287 new homes were listed, with 156 units sold. Overall, Ottawa saw more transactions falling through compared to previous years. Buyers took a very cautious tone, often walking away due to discrepancies in the inspection or disagreement on price. If buyers did not like something, they moved on, whereas previously, this was not an option due to listing scarcity. Buyers were also waiting for prices to decline, but this did not transpire.
In June, the Bank of Canada announced an interest rate drop of 25 basis points. While some buyer optimism returned, this was not reflected in market activity. Units sold for residentialclass properties valued between $1 - 1.99 million dropped by 21.15 per cent month-over-month, while the average sold price remained flat. If sellers did not receive what they expected for their properties, they chose to pull the listings from the market rather than sell.
Property Spotlight
Lillico . Engel & Völkers Ottawa
Before listing, the property required substantial exterior and interior enhancements along with extensive staging. With the right marketing strategy and staging expertise, Engel & Völkers estimated it could sell the home for significantly more than the $2,400,000 valuation given by another real estate professional.
This residence’s exquisite craftsmanship and beauty are matched by its stunning waterfront lot location in the heart of Manotick. The entryway is characterized by abundant natural light, courtesy of floor-to-ceiling sliding doors
framing picturesque river views. The open-concept design seamlessly merges the living, dining, and kitchen areas, creating an ideal space for entertaining. The custom Astro kitchen is a culinary masterpiece featuring top-of-the-line appliances, bespoke cabinetry and a spectacular island. The home offers panoramic water views from the luxurious primary suite, complete with a sumptuous ensuite, soaking tub, walk-in shower and elegant vanity. The lower level is an entertainer’s paradise boasting a spacious family room, home theatre, wet bar and three generous bedrooms, all with breathtaking views.
Kim
Advisor’s Commentary
The home sold swiftly. Key contributing factors included its prime location, stunning waterfront views, and exceptional finishes. The cadence of the sale reflects current market conditions. Listed on Friday, May 24, 2024, for $2,699,000, a “coming soon” social media and mailer campaign was executed 72 hours prior to the MLS launch date, followed by two consecutive open houses on Saturday and Sunday. The open house over the weekend attracted more than 35 buyers.
Before the launch date, five showings were pre-booked. An offer was submitted on Friday evening with a 72-hour irrevocable period. Notice was sent to all showing agents with an offer presentation date and time set. On Monday, we received three additional offers, including a revised offer from the initial bidder. The property sold firm in three days, over the asking price.
The luxury market is still strong in Ottawa as long as properties are ideally located, updated and strategically priced.
Engel & Völkers Canada predicts Ottawa residential and condo properties over $1 million will see a 5% price increase by year-end.
Market Outlook
Ottawa’s market is leaning towards buyers, but it is not a buyer’s market. A balanced market is four months of inventory, and Ottawa’s currently hovers around 2.5 months across all price points. This low inventory and interest rate decrease is why Engel & Völkers anticipates prices will remain fairly stable with a slight upward tick.
Current inventory is sufficient to sustain competition, particularly in the upper segment. With many homes over $2 million on the market, a significant price increase is unlikely. Sellers must be realistic when pricing homes through the second half of the year, and those without a prime location or amenities will need to make some concessions if they want to sell. Homes priced correctly will sell in a timely fashion.
1420 Royal Maple Drive Engel & Völkers Ottawa Central
NEIGHBOURHOOD RADAR
Ottawa
“ In Westboro, Glebe, and Manotick, the market is active but not overly so. People buy and sell for traditional reasons like marriage, kids, retirement, and job transfers.”
John King License Partner, Engel & Völkers Ottawa
Westboro
Glebe
Manotick
Toronto
From
January to June 2024, the value of homes priced at $8 million and higher grew by 4.73% compared to last year.
Welcome to Toronto
In 2024, the Toronto real estate market for homes priced at $1 million and higher has shown stability and consistency, with seasonal increases in new listings and sales. Most notably, the 416 area code saw the value of detached homes $8 million and higher increase by 4.72 per cent from January to June, compared to last year. All but one of these sales were original listings rather than re-listed properties. Impressively, 45 per cent of these homes sold within 10 days. The average selling price was $10,602,222, with $15,500,000 representing the annual high and $8,950,000 representing the annual low. The year started positively, as January real estate sales in the Greater Toronto Area (GTA) saw both month-over-month and year-over-year increases, following the GTA’s lowest annual sales in 23 years in 2023.
In February, Toronto’s housing market showed signs of a rebound as it approached spring, with buyers anticipating a possible interest rate decrease in April. However, consumers felt the growing cost of living, leading to market apprehension through February and March. Despite this, sales for homes over $1 million increased in February, growing from 364 in January to 729 in February. In March, they grew again to 850. In April 2024, the number of new listings priced over $1 million grew by 124.8 per cent compared to January 2024, from 907 to 2,039, as sellers prepared for a possible interest rate cut. Though 976 units priced over $1 million were sold, the market did not materialize as expected, as many potential homebuyers likely waited for the Bank of Canada to begin cutting its policy rate before purchasing.
Though homebuyers benefitted from slightly lower selling prices than the previous year, with more choice and
negotiating power, they stood by for relief on the mortgage rate front. Multiple offers were common for homes in good locations that were priced correctly.
Homes in less desirable locations were sold but needed to be marketed and priced smartly. Condo inventory tended
“ Once competition for detached homes returns, and buyers are squeezed out of this part of the market, they will return to buying condos. Qualified buyers should seize the moment and leverage their strong negotiation position, locking in a property price on the cusp of interest rates heading south. ”
Anita Springate-Renaud License Partner Engel & Völkers Toronto Central
New Listings
Total Units Sold
to remain on the market for longer. As buying power grew due to a lack of competition, many prioritized buying a house over a condo, avoiding costly land transfer taxes and other expenses associated with living in a condo. During this period, the condo inventory that was not situated in a prime location remained unsold. At the end of May, the GTA had the highest number of condo units for sale for any month in recent history, totalling 8,183 apartment units on the market.7 This rise in inventory can be credited to reluctant domestic investors and first-time homebuyers being deterred by high purchase prices and borrowing costs.
Historically, Toronto builders have not designed condo floor plans suitable for families or downsizers, which has created an oversupply of single-bedroom or one-bedroom plus
den condo units on the housing market. As such, retirees continue to choose to age in place because affordable, available condos are too small for downsizing. The right-sized units for this demographic are priced so high that it becomes a lateral move.
On June 5, 2024, the Bank of Canada made its first rate cut of 25 basis points since April 2022, a significant event in the market. As buyers and sellers emerged from their slumber, many were surprised home prices remained steady, with slight increases for many properties, indicating a more balanced market. There was renewed optimism in the market, however, many buyers continued to wait, feeling it was too early to commit.
Average Sold Price
7 Toronto Regional Real Estate Board, June 2024.
Property Spotlight
161 Roehampton Avenue, Suite 803
Jason DeLuca . Engel & Völkers Toronto Central Yorkville
The sale of suite 803 reflects current market conditions. The listing came on the market at the same time as interest rate increases began. Adjusting mindset and pricing took time, but buyer interest increased once this adjustment was made.
Advisor Jason De Luca’s presence during showings helped capitalize on that interest.
This two-level, southeast corner suite features three bedrooms, a den, and three bathrooms. It boasts doubleheight ceilings, a 1,396 sq. ft. interior, and a 722 sq. ft. terrace with gas and water lines. After two years on the market and 140
On August 10, 2022, the price was further reduced by another $500,000 as interest rate hikes stalled buyers. By the end of 2022, the overnight interest rate had climbed to four per cent. As rates stabilized through 2023, the listing price remained around $2,000,000, and De Luca brought in his own buyer client. After two weeks of negotiation, a firm deal was secured. BEDROOMS
showings, the suite was sold for $1,700,000 on April 28, 2024. It was initially listed on April 12, 2022, at $2,950,000. On April 26, 2022, the price was reduced by $500,000 when the Bank of Canada raised the overnight interest rate to one per cent.
Advisor’s Commentary
When this property was first listed, the Toronto real estate market was at an all-time high, characterized by an extreme seller’s market. Sale prices were breaking records weekly. It took some time after interest rates began to climb for the seller to adapt to the new market pricing. Once the seller aligned the listing pricing with the current market, showings and interest began to pick up. As the listing advisor, De Luca attended most showings to ensure buyers understood the value that suite 803 offered compared to other available inventory.
Once the sale was posted on MLS, the owner of Suite 805 contacted Engel & Völkers Toronto Central Yorkville. They decided to terminate their listing with their previous real estate advisor and have De Luca take on the listing.
Once pricing was aligned with the current market, interest picked up significantly. Potential buyers scheduled more viewings, and inquiries markedly increased.
Engel & Völkers Canada predicts Toronto residential homes over $1 million will see a 5% price increase by year-end.
Market Outlook
From July through year-end, the Toronto market presents an opportunity for buyers who can afford current prices and rates. These qualified buyers should take the opportunity to secure a price in the next half of the year, and ride the interest rates down. If a longer closing period is part of the negotiation, the buyer may be able to lock in a lower interest rate if it drops again during this period.
Engel & Völkers recommends sellers prepare now to list this fall, aligning their timing with the anticipated rate cut. Once
buyers begin getting priced out of the residential home market, they will not be able to compete, and consumer demand for condos will return. The number of listings on the market is still out of step with buyer demand, and it will take time for the level of residential inventory to be absorbed.
Investors should note that climbing rental rates will affect Toronto’s condo market outlook. Renters have a threshold, and many will reach a point where buying makes more sense than continuing to rent.
377 Madison Avenue PH 7806
Engel & Völkers Toronto Central
NEIGHBOURHOOD RADAR
Toronto
“ We’re keeping our eyes on The Pocket, an East End neighbourhood close to prime Riverdale, Leslieville and Greektown. ”
Anita Springate-Renaud
License Partner, Engel & Völkers Toronto Central
“ Despite the foreign buyer ban, the Toronto real estate market demonstrates strong long-term demand and resilience, particularly in the key downtown core areas.”
Patrice Groleau
License
Partner,
Engel & Völkers Toronto City
Runnymede - Bloor West Village
The Pocket
City of Toronto
Vancouver
Despite more listings and fewer units sold, the average sales price of $2 - 3.99 million residential homes grew by 4.72% from January to June.
Welcome to Vancouver
The significant increase in borrowing costs in 2023 led many forecasters to speculate prices would decline during the year, but this did not materialize in Vancouver in the first half of 2024. From January to June, prices for homes above $1 million remained remarkably stable, despite the sluggish market. This can be attributed to seller behaviour in Vancouver, which typically sees sellers refrain from listing homes during times of uncertainty. This results in the availability of resale homes becoming too low, however, prices remained stable. Inventory has risen to match the 10-year average, but sales have remained below the 10-year average for an unusually extended period.
In February 2024, the number of listings in Metro Vancouver across all price points rose by 31 per cent.8 In the luxury segment, listings grew most notably in the $1 - 1.99 million segment, by 33.72 per cent, and the $2 - 3.99 million segment, by 19.95 per cent. Listings continued to increase in March and spiked in April, climbing above the 10-year average for the first time since 2022.
Engel & Völkers reported that throughout 2023, many sellers deferred listing their homes, waiting for spring 2024, which explains the 3,542 listings priced over $1 million that came to market in April 2024, the yearly high thus far. Sales during the month also grew to 1,213, and Vancouver’s position as a balanced market was maintained. This positioned May 2024 to be an interesting month. Would this inventory growth translate into absorption in sales?
Throughout May 2024, buyers continued to be choosy, and the number of units sold priced over $1 million dipped marginally to 1,206 units. The number of listings on the market fell marginally as well to 3,144, leaving buyers with an abundance of choice.
“The recent zoning changes in Vancouver have opened up substantial areas for development. Despite this, several economic challenges are deterring developers from capitalizing on these opportunities, including permits, timelines, property values and the economy.”
Andrew Carros Chief Operating Officer Engel & Völkers Vancouver
8 Greater Vancouver REALTORS®, March 2024.
Total Units Sold
The lack of competition led to many buyers signing contracts and terminating them days later due to certain contingencies needing to be satisfied. These included unsatisfactory home inspections, issues with condo association documents, misaligned home appraisals and issues with financing. Real estate transactions tended to require much information passing back and forth between buyer and seller representation, and tough price negotiations were common. The primary reasons for buying and selling were upsizing, downsizing or relocating. The Canadian government has removed many incentives from the market, creating conditions unfavourable to investors and a lack of drive in price appreciation. Additionally, it is difficult to find investment properties offering positive cash flow, removing the incentive to take risks and purchase units to list them as rentals. There is a lot of pressure on the low end of the market in leasing, and as a result, the cost of rent continues to climb disproportionately due to a shortage of rental units
Average Sold Price
on the market. Due to the government-imposed restrictions, many potential investors who typically met the demand for rentals are now out of the market.
In June 2024, the Bank of Canada announced a 25 basis point interest rate drop. As interest rates shift direction, optimism will rise, giving people the security to move forward. In Vancouver, prices often increase even in a down market, which typically refers to the number of sales rather than falling prices.
Property Spotlight
1708 Stephens Street
Michelle Porter . Engel & Völkers Vancouver
$3.8 million
This charming 1/2 duplex is located on a spacious corner lot within the sought-after North of 4th community. The property offers a unique blend of privacy and accessibility, surrounded by mature trees and lush landscaping that enhance the property’s charm.
Upon entering the main floor, visitors are greeted by an open layout that seamlessly connects the living, dining and kitchen areas. The double-sided fireplace is a stunning focal point, adding warmth and ambiance to the living room and dining area. The kitchen is a chef’s dream, featuring highend appliances, custom cabinetry and elegant finishes. Granite countertops and a spacious island provide ample meal preparation and casual dining space.
Upstairs are two generously sized bedrooms. The primary bedroom, with large windows, offers views of the garden, while the second bedroom sits more waterfront, offering glimpses of the ocean. Both bedrooms feature ample closet space and well-appointed bathrooms with modern fixtures and finishes.
The lower level of the home provides additional living space, including two more bedrooms and a media room. This level has its own private entrance, making it ideal for extended family, guests or potential rental income.
Advisor’s Commentary
The property’s value warrants careful evaluation. At first glance, the list price of $3.99 million for a 1/2 duplex may seem high. However, a savvy consumer will recognize the unique value propositions, including the generous square footage, premium finishes and unbeatable location. This home offers an unparalleled lifestyle, situated minutes from the beach, downtown and convenient bike routes along the Seawall. Homes of this calibre in such a coveted location rarely come on the market, making this a rare opportunity to own a truly exceptional property in one of Vancouver’s most idyllic neighbourhoods.
In the current market, buyers and sellers have opposite feelings regarding how things should go. Frankly, both sides have a point, and this moment should be dubbed, the “Great Confusion.”
Engel & Völkers Canada predicts Vancouver residential and condominium properties worth over $1 million will see a 4% price increase by year-end.
Market Outlook
Prices have not dropped in the past two years, and Engel & Völkers observes they’re unlikely to fall in the next six months. With interest rates dropping incrementally, price increases are on the horizon. Engel &Völkers predicts price stability with slight increases. Vancouver could approach the pricing high of 2022 by year-end.
In the current market, premium properties priced correctly will sell. The high-end market is still active, with significant business occurring. However, there’s a noticeable stalemate in the market, where buyers and sellers are locked in a situation where they are too confused to move. Working
with a real estate professional who is well-versed in realtime market conditions is important, especially when at the negotiation table.
The second half of this year will likely see higher sales volume compared to 2023. If volume remains up, prices will gradually rise, though a surge is not expected. Every market has good and bad opportunities, but Engel & Völkers does not foresee a buying panic or a significant surge before year-end. Buyers and sellers will feel more comfortable transacting once they start seeing consistency.
102 2015 Beach Avenue Engel & Völkers Vancouver
NEIGHBOURHOOD RADAR
Vancouver
“ Kitsilano, Fairview and Mount Pleasant demonstrate stability in the attached residential home market. Detached houses in East and North Vancouver remain strong, as do Ocean Park and South Surrey.”
Andrew Carros Chief Operating Officer, Engel & Völkers Vancouver