Posthaste: Canada's luxury housing market falls 'back to reality' from heady heights

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Economic headwinds and a surge in summer travel kept luxury property buyers and sellers on the sidelines in the third quarter. Find out more.

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Sales and listings of homes priced above $1 million fell across the country in the third quarter of 2022, as both buyers and sellers sat on the sidelines amid a weakening economy, bringing the market “back to reality,” according to Sotheby’s International Realty Canada’s latest luxury real estate report, released this morning.

Additionally, a surge in summer travel drove more sellers to retreat from the market, keeping inventory levels even lower than usual in what is typically a slower time of the year for real estate activity.Article content Vancouver’s market also came off the boil in the third quarter. Inventory “evaporated” and sales of homes above $4 million fell 51 per cent from the record set last summer. Sales of residences priced over $1 million declined 37 per cent. In September alone, transactions of homes on the market for $1 million or more fell 70 per cent year over year, Sotheby’s said.

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