A secular confluence of factors–peak debt, unaffordable prices, rising rates, tighter lending, reduced foreign flows, insufficient saving rates and aging boomers looking to downsize–are all finally working to dramatically reduce Canadian home sales from peak mania in 2017. Prices should continue to follow with a lag, and history suggests that these trends could continue for a decade and more. No one should be surprised.
Sales of luxury homes in two of Canada’s most expensive cities fell this year, as the high-end real estate market continued to feel the impact of foreign buyers taxes.
Realty brokerage Re/Max says sales of single-detached homes priced from $1 million to $2 million fell 35 percent from a year ago in both Toronto and Vancouver.
According to the annual report, released Tuesday, sales of single-detached homes in the $2-million-to-$3-million range were down 50 percent in Toronto and 22 percent in Vancouver. See Luxury home sales drop 35% in Toronto and Vancouver
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