National Overview
Demand for luxury properties surges amidst pandemic as Canadian markets power through volatile COVID-19 market cycle. Canada’s major metropolitan areas are defying doom and
At a national level, April was marked by generational lows.
gloom forecasts, showing market resiliency following a
Home sale activity fell by a record 56 per cent compared
significant pause due to COVID-19. Until lockdown began
to an already affected March.1 Year-over-year, national
across Canada in late March, Halifax, Ottawa, Montréal,
sales dropped by 57.6 per cent, the lowest April sales
Toronto and Vancouver reported 2020 as one of the
figure since 1984.2 The number of newly listed homes
busiest years on record.
across Canada declined by 55 per cent in April compared to March.3
As lockdowns went into effect in late March, the crisis forced buyers and sellers to quickly adjust to the new
Despite these declines, prices held in most markets
market environment. While many sellers held off on listing
through the pandemic. Even amidst lockdown, April saw
or took their properties off the market, many remained.
Ottawa and Montréal record the largest year-over-year price increases, with Ottawa’s increasing by 10.5 per cent
In British Columbia, Nova Scotia and Ontario, real estate
and Montréal’s increasing by 8.4 per cent.4
was deemed an essential service allowing transactions to occur under significant restrictions. Québec, on the other
Showings through 3D virtual tours and video conferencing
hand, put the market on an unprecedented pause,
became the norm as buyer demand outpaced market
shutting it down from the end of March through May 11.
supply, leading to multiple offer situations in all markets participating in this report. In fact, Engel & Völkers shops in Ottawa, Montréal and Halifax are reporting a noticeable uptick in transactions and stories of domestic and
Even amidst the pandemic, June saw Ottawa’s YoY home prices increase
international buyers purchasing properties sight unseen.
16%
When borders reopen, Engel & Völkers is forecasting an influx of interest from the U.S., Hong Kong and Europe. National
home
sales in May 2020
record 56.9 per cent, constituting of the
activity
lost
between
rebounded by a
one-third of a return February and April. By
June, price gains returned to pre-pandemic levels.
1
Canadian Real Estate Association, May 2020
2
Canadian Real Estate Association, May 2020
Inventory increased, but not enough to meet pent-up
3
Canadian Real Estate Association, May 2020
buyer demand.
4
Canadian Real Estate Association, May 2020
6
Engel & Völkers Americas Canadian Luxury Real Estate Market Report Mid-Year 2020
Engel & Völkers Americas Canadian Luxury Real Estate Market Report Mid-Year 2020
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