Luxury real estate across Canada’s largest markets is showing remarkable price stability, outpacing the typical fluctuations of the mainstream housing market. According to the 2024 Royal LePage® Carriage Trade® Luxury Market Report, luxury home sales increased in most Canadian cities during the first eight months of 2024 compared to the same period in 2023, excluding Vancouver, Toronto, and Halifax. Prices saw modest gains in some regions while dipping slightly in others.
Phil Soper, President and CEO of Royal LePage, emphasized the distinct pace of luxury market transactions: “Luxury homes tend to change hands more slowly, allowing buyers the luxury of time to find their perfect property. Despite local market variations, the high-end real estate market consistently attracts buyers who know what they want and are willing to wait for it.”
While fewer homes are sold in the luxury market compared to the mainstream, Prairie provinces, led by Winnipeg, saw the largest year-over-year growth in luxury sales for 2024, with Edmonton and Calgary close behind. Alberta’s strong demand from out-of-province buyers continues to drive its market. Additionally, Quebec City experienced substantial growth in its luxury segment.
Luxury Real Estate Poised for a Strong Fall Market
Luxury real estate experts across Canada are predicting a robust fall season, driven by consumer confidence. Buyers in this segment are highly selective, with some seeking fully-renovated, turn-key properties due to rising construction costs, while others are drawn to custom-built homes despite longer timelines.
“Luxury buyers are driven by more than just specific neighborhoods or high-end features,” Soper noted. “Their decisions are influenced by their confidence in the economy and long-term property values. Our research indicates that luxury buyers are optimistic about the continued stability and appreciation of Canada’s housing market.”
The report also highlights that many luxury buyers make substantial down payments or even purchase properties outright, reducing their sensitivity to high interest rates. This financial flexibility makes macroeconomic factors a more significant driver for new purchases in the luxury segment.
Impact of the Foreign Buyer Ban on Luxury Sales
The federal government’s ban on foreign buyers, implemented in January 2023 and extended through 2027, has had limited impact on luxury property prices and inventory. While it briefly slowed demand in some affluent markets, the overall effect has been minimal.
“Foreign investors typically target luxury properties,” Soper explained. “However, the ban has not significantly affected prices. The primary driver of upward pressure on prices continues to be the imbalance between supply and demand across all property segments.”
Regional Insights: A Look at Key Luxury Markets in 2024
Toronto
In the first eight months of 2024, the median price for a luxury property in Toronto rose by 3.9% year-over-year, reaching $5,820,000. During the same period, sales activity dropped by 5.0%. The entry point for a luxury property in Toronto is currently set at $4,750,000.
“Toronto’s luxury market started off slowly this year, impacted by the updated municipal land transfer tax that came into effect on January 1st,” said Gillian Oxley, Sales Representative at Royal LePage Real Estate Services, Oxley Real Estate. “The revised tax, with higher rates on properties over $3,000,000 starting at 3.5%, contributed to a slower-than-usual spring market, which resulted in an increased inventory of available homes.”
Despite the initial market slowdown, many sellers chose to keep their properties on the market, which led to a rise in the average days on market for luxury listings. Homes sold above the entry-level luxury threshold in Toronto typically feature 4.2 bedrooms, 5.7 bathrooms, and 2,369 square feet of living space.
“With the current market conditions, many buyers are being more patient and looking for bargains, but space and location remain the ultimate luxuries. Homes with proximity to transit, high-end restaurants, parks, and ravines are still highly sought after,” added Oxley.
Oxley anticipates increased activity in Toronto’s luxury market this fall, with improving conditions expected in the spring, driven by reduced interest rates and growing consumer confidence.
Montreal
Montreal’s luxury real estate market saw a 2.8% year-over-year decline in the median price, now sitting at $3,150,000 for the first eight months of 2024. In contrast, sales activity increased by 8.3%. The entry-level price for a luxury property in Montreal is $2,500,000.
“Sales activity has picked up in Montreal’s luxury market, as declining interest rates have reassured high-end buyers,” said Marie-Yvonne Paint, Certified Residential and Commercial Real Estate Broker, Royal LePage Heritage. “Buyers are now more focused on move-in-ready properties that require minimal renovations, while sellers remain patient, resulting in higher-than-usual inventory.”
Properties sold above Montreal’s luxury threshold this year average 3.7 bedrooms and 3.1 bathrooms. Paint notes that the luxury market is still relatively small compared to the broader real estate market, making it essential for sellers to work with knowledgeable real estate professionals to ensure favorable outcomes.
Paint expects steady market growth in the fall and spring as inflation stabilizes and interest rates drop, leading to increased buyer optimism.
Vancouver
In Vancouver, the median price of a luxury property fell by 1.8% year-over-year to $6,975,000 for the first eight months of 2024, while sales activity dropped significantly by 38.8%. The entry-level price for a luxury property in the city stands at $5,500,000.
“Many buyers are waiting for the bottom of the market, which has caused a slowdown in activity,” said Jesse Dean Cook, Sales Representative at Royal LePage Sussex. “While some buyers are hoping for price drops, the limited luxury housing inventory has prevented significant discounts.”
Luxury homes sold in Vancouver this year typically feature 5.2 bedrooms and 6.0 bathrooms. Although interest rates have little effect on Vancouver’s luxury market—where most buyers do not require financing—Cook notes that overall economic uncertainty continues to weigh on buyer sentiment.
Cook expects moderate activity through the fall, even with anticipated interest rate cuts.
Ottawa
In the first eight months of 2024, Ottawa’s luxury real estate market saw a 2.0% increase in median price, reaching $2,442,500, while sales activity rose by an impressive 13.0%. The entry-level price for a luxury home in Ottawa is $2,000,000.
“2023 was a slow year for Ottawa’s luxury market, with many buyers taking a wait-and-see approach,” said Charles Sezlik, sales representative at Royal LePage Team Realty. “However, we saw a resurgence in the spring of 2024, with strong sales and a modest uptick in prices. Luxury builds have increased, and both buyer and seller confidence remain high.”
Despite high borrowing costs having little effect on this market, luxury homes in Ottawa continue to attract interest from entrepreneurs, tech professionals, and government officials. Many buyers are drawn to the city’s modern, architectural-style homes, a trend that is expected to fuel demand throughout the fall and into 2025.
Quebec City
In Quebec City, the luxury market has taken a different path, with the median price of high-end properties decreasing by 7.2% year-over-year, landing at $1,200,000. However, sales activity surged by 30.4%, indicating that buyers are taking advantage of favorable conditions. The entry-level price for luxury homes in Quebec City is $1,000,000.
“Unlike the mainstream market, Quebec City’s luxury segment is seeing more inventory and lower prices, giving buyers an advantage,” said Louis Belzile, real estate broker at Royal LePage Blanc & Noir. “Turn-key properties are still receiving competitive offers, but for the most part, buyers have the upper hand.”
The market is attracting young professionals and families seeking more space, with neighborhoods like Sillery and Sainte-Foy remaining popular. Emerging areas like Lac-Beauport are also gaining traction due to their proximity to nature.
Calgary
In Calgary, the luxury real estate market remained stable, with the median price slightly dipping by 0.3%, settling at $2,143,000. Sales activity, however, saw a robust 30.9% increase, making Calgary one of the fastest-growing luxury markets in the country. The entry-level price for luxury properties in Calgary is $1,750,000.
“Luxury buyers are returning to the Calgary market after a period of uncertainty during the pandemic,” said John Hripko, sales representative at Royal LePage Benchmark. “There’s a trend of buyers from other major cities coming to Calgary, where they can get a bigger property for a better price.”
Luxury properties in neighborhoods like Mount Royal and Elbow Park are highly sought after due to their larger lots and proximity to downtown. Hripko expects this positive trend to continue through the fall and into 2025.
Edmonton
In Edmonton, the luxury market experienced a modest 0.9% increase in the median price, reaching $1,589,900, while sales activity saw an impressive 39.7% growth in the first eight months of 2024. The entry-level price for luxury homes in Edmonton is $1,250,000.
“Luxury homes, especially at the entry-level, have seen a surge in demand in Edmonton,” said Ed Lastiwka, associate broker at Royal LePage Noralta Real Estate. “As listings begin to decrease, active sellers are benefiting from increased showings and buyer interest.”
Two types of luxury buyers dominate the Edmonton market: those looking to remodel older homes and those interested in building new, custom homes. While high-end buyers are less affected by interest rate fluctuations, some entry-level luxury buyers may still require financing.
Halifax
Halifax experienced the highest price appreciation among Canada’s major cities, with the median price of a luxury property increasing by 8.6% year-over-year to $1,929,500. However, sales activity declined by 16.7%. The entry-level price for a luxury property in Halifax is $1,500,000.
“Luxury buyers who were hesitant to engage in the frenzy of 2021 have returned as interest rates drop and economic stability improves,” said David Dunn, Sales Representative at Royal LePage Atlantic. “This seller’s market continues to see steady price growth due to limited supply.”
Luxury properties sold in Halifax this year average 3.5 bedrooms, 2.9 bathrooms, and 2,405 square feet of living space. Dunn expects strong market activity this fall, as buyers seek to secure properties before winter sets in.
Winnipeg
In Winnipeg, the luxury market has seen a 4.9% increase in the median price, now at $1,206,000, with sales activity surging by 61.9%, the highest among Canada’s major cities. The entry-level price for a luxury home in Winnipeg is $1,000,000.
“The luxury market here is relatively small but has remained robust,” said Chris Pennycook, Sales Representative at Royal LePage Dynamic Real Estate. “Sellers can list with confidence, and buyers see luxury real estate as a stable, long-term investment.”
Luxury properties in Winnipeg this year typically offer 4.2 bedrooms, 3.1 bathrooms, and 2,892 square feet of living space. Pennycook expects the market to remain strong through the end of the year, with new listings and continued demand.
Regina
Regina saw a 3.8% year-over-year decrease in the median price of luxury properties, now at $843,300, with sales activity increasing by 14.6%. The entry-level price for a luxury home in Regina is $750,000.
“Luxury properties in Regina are selling quickly, with the average days on market below 40,” said Shaheen Zareh, Sales Representative at Royal LePage Regina Realty. “The limited supply has led to strong demand, particularly for custom-built homes.”
Luxury properties sold in Regina this year have an average of 4.0 bedrooms, 3.6 bathrooms, and 2,223 square feet of living space. Zareh anticipates continued growth in the luxury segment, with activity likely to increase throughout the year.
About the Report
The 2024 Royal LePage® Carriage Trade® Luxury Market Report provides data and insights on luxury properties across ten of Canada’s largest real estate markets. Data was collected from January 1, 2023, to August 31, 2024. For further details, visit rlp.ca/2024-Luxury-Market-Report-Chart.