Canada’s economy is expected to grow by 6.1% in 2021 as every province starts to see growth. Consumer optimism is high as the population is rapidly vaccinating against COVID-19, significantly slowly the spread of the virus. The end feels within sight.
This boom and high optimism is causing luxury property sales to grow vs 2019 data. Homes valued over $1 million appear to be outpacing all over segments of the housing market in terms of sales growth. In just the Greater Toronto Area, H1 2020 sales of properties valued over $4 million increased by 114% over 2019 figures. Home sales for properties valued between $1 million and $4 million increased by 217% vs 2019.
The same trend is evident in other major Canadian markets such as Vancouver, Calgary, and Montreal.
This growth is largely due to the shift in the perceived value of our homes, spurred by the COVID-19 crisis and the work-from-home orders. With less travel, limited office time, and restricted indoor entertainment options, ours homes have taken on a much greater role in our lives since March 2020 as the virus spread and public health restrictions came into effect.
As Canada’s vaccination rates increase and we slowly start to emerge from this pandemic, the “new normal” is developing, and we expect to see increased work-from-home options. As such, we anticipate the home remaining a higher priority space in people’s lives. As this will continue to drive home sales and home values, especially in the $1 million plus category.