Posthaste: Sales dwindle in luxury real estate market — but don't blame a lack of buyers

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Luxury home sales retreated across Canada this past winter as a lack of inventory kept homebuyers on the sidelines, Sotheby\u0027s says. Read on.

retreated across much of Canada this past winter, but a lack of buyers isn’t to blame for the pullback and the market is expected to pick up this spring, according to Sotheby’s International Realty Canada.properties were slower in the first quarter of 2023 compared to the same time last year, with Toronto, Vancouver, Montreal and Calgary all registering declines, says Sotheby’s latest report on the state of high-tier housing.in Canada, bore the brunt of the slump in sales.

Montreal’s market also climbed down from 2022 levels, with sales of luxury properties above $1 million declining 43 per cent in the first quarter compared to last year. Residences priced at $4 million and higher experienced a slowdown in sales, too, falling 33 per cent year over year. Meanwhile, Calgary remains a bright spot in the market amid a growing economy that’s attracting new residents from other parts of Canada. But it too experienced slower sales when compared to the same time last year. Sales of $1-million homes fell 36 per cent compared to the first quarter of 2022. However, Sotheby’s says sales are up 223 per cent compared to the same time in 2020, which shows the underlying strength of the market.

The overall drop in home sales isn’t a sign that buyers have given up on homeownership, however. Sotheby’s blames a lack of listings for the downturn in transactions, and says people are ready and eager to get back into the market to find their dream homes.

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