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The Canadian luxury real estate market experienced a robust start in early 2025, with significant activity in major cities like Toronto and Vancouver. However, as the year progressed, the market began to cool due to factors such as rising interest rates and shifting buyer preferences. In Toronto, sales of homes priced over $4 million saw a 21% increase year-over-year in 2024, driven by strong demand for single-family homes. Vancouver's luxury market, on the other hand, faced challenges with an 11% decline in sales over $4 million during the same period.

​ The slowdown in the luxury market can be attributed to several factors, including rising interest rates and changing buyer preferences. In Toronto, the market for homes priced over $4 million saw a 21% year-over-year increase in 2024, indicating strong demand. Conversely, Vancouver experienced an 11% decline in sales over $4 million during the same period, highlighting regional disparities. ​

Despite the current slowdown, industry experts remain cautiously optimistic about the future of Canada's luxury real estate market. The Bank of Canada's monetary easing, which began in June 2024, has enhanced consumer confidence and facilitated movement from conventional markets into entry-level luxury segments. Additionally, the influx of new permanent residents is expected to sustain demand in the long term. As the market adjusts to these evolving conditions, both buyers and sellers are advised to stay informed and adapt their strategies accordingly.

Read the full article on: REAL ESTATE MAGAZINE