Canada's Ultra-Luxury Market is Unaffected by Climbing Interest Rates

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The 1% of Canada are still buying real estate — and the country’s priciest cities are no exception. realestate realestatenews realestatemarket luxury

haven’t had an impact on the ultra-luxury real estate segment the way they have the rest of the market.According to the latest

“It’s really interesting to me that the ultra-luxury market hasn’t seen the same impact as the regular residential market,” says Monika Schnarre, an Engel & Völkers real estate advisor who deals with the Toronto and Ontario cottage country markets . “There are a few reasons; the stock market is still relatively high and has been over the past five years; there has been a correction, but it’s a soft correction, not a dramatic one.

It’s a similar story in the equally as pricey Vancouver. “Despite interest rate hikes’ impact on the $1M – $3.99M segment and the middle market, ultra-luxury homebuyers over the $4M price point are not seeing as much of an impact,” says Amy Leong, an advisor at Engel & Völkers Vancouver. “While some buyers in the ultra-luxury segment previously took advantage of historically low interest rates to purchase properties, many are able to pay for the home in full.

 

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