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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘A bag full of garbage every 15 metres’: Surrey industrial area filled with trash

Local workers looking to recruit business, raise funds to help dispose of litter

Survey suggests 83 per cent of Surreyites ‘favour a referendum’ on policing transition

Survey was conducted by Pollara Strategic Insights on behalf of the National Police Federation

Racist graffiti sparks Cloverdale man to renew calls for City to clean up street

Hate message the latest garbage dumped at the end of 176th Street

Brand new Tesla crashes into Surrey store front, mounts gas line

Driver was heading to the Autoplan store, straight off the lot

VIDEO: Behind the scenes of turning newspapers into digital archives

Kelowna Capital News donated materials dating from 1980 to 2000

Heart attacks strike B.C. husband and wife just over one year apart

Courtenay couple share personal stories to bring awareness to heart month

‘Nothing surprises us anymore:’ U.S. border officials find brain in package

U.S. Customs and Border Protection agents found the brain packed in a glass mason jar in a Canada Post shipment

VIDEO: Giants winning streak now stands at 11

Team erased a 5-2 deficit by scoring every five minutes

Fiery collision involving truck closes Highway 1 at Three Valley Gap

Drivers should expect major delays and congestion; estimated time of re-opening is 2 p.m.

B.C., Ottawa sign sweeping 30-year deal for northern caribou habitat

West Moberly, Saulteau co-manage new protection on two million acres

Eyes on police after Trudeau orders blockades torn down, injunctions enforced

The RCMP in B.C. have sent a letter to the traditional leaders of the Wet’suwet’en Nation

B.C. massage therapist suspended following allegations of sexual misconduct

While suspended, Leonard Krekic is not entitled to practice as an RMT in B.C.

New Alberta forward joins Vancouver Giants’ ranks

new left-handed 18-year-old is a familiar face to Giants head coach Michael Dyck

Most Read