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

Just Posted

Castlegar man denied bail in trafficking case

Bradley Morehouse is accused of trafficking narcotics after RCMP executed two search warrants

Overnight warming centre opening in Castlegar

Facility will be open from 8 p.m. to 8 a.m. when the temperature dips below -5 degrees.

CP Holiday Train headed to Castlegar

The festive food bank fundraiser will take place December 12.

Castlegar Holiday Happenings

Plenty to do to celebrate the season!

WorkSafeBC investigating serious incident at Trail landfill

Incident shuts down McKelvey Creek landfill Friday morning

‘Kind of lacking:’ Injured Bronco wonders why Canada won’t fund spinal surgery

“I think if Canada can step in and advance this program”

Chilliwack family’s therapy dog injured in hit and run

Miniature pit bull Fifty’s owner is a single mother facing close to $10,000 in vet bills

Cougar destroyed in Penticton area after mauling dog, killing cat

This is the first reported incident with a cougar this year in the Penticton area

Feds not enforcing standards on Hungarian duck imports, B.C. farmer says

‘You have no way of knowing what’s in the bag’

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

Dance cancelled after Alberta teacher’s climate lesson prompts online threats

School district near Red Deer cancelled annual family dance due to Facebook comments

In surprise move, defence won’t call witnesses for accused in Abbotsford school killing

‘Change of instructions’ results in defence closing case without calling evidence

B.C. VIEWS: An engine that hums right along

First Nations are leading a new surge of investment in B.C.

Most Read