Top Tip Real Estate : Spring 2023

Canada's luxury real estate market saw muted sales activity in the first quarter of 2023, as a shortage of housing supply across every spectrum of the market compelled real estate sellers and buyers to delay market engagement to the second quarter. The country's major metropolitan areas are primed to see a resurgence of newly pre-qualified and highly motivated home buyers across the luxury and conventional markets this spring, as those who paused their activity in 2022 renew their search, albeit with an empowered mindset that will deter significant price escalation. Despite buoyant consumer confidence and a level of demand that would typically prime the market for healthy activity, a deficit of property listings is expected to place a ceiling on potential spring sales, hampering the housing needs and aspirations of Canadians.

"There has been an immense build-up of demand for housing mobility across Canada's conventional and luxury real estate market over the past few years, and confidence in the short- and long-term performance of the country's major metropolitan real estate markets has been unwavering. A significant cohort of prospective home buyers and sellers who were reluctant to make a move in 2022 have now adjusted their expectations to new market norms, and are now pre-qualified, highly motivated and anxious to find a home that meets their needs and lifestyle," says Don Kottick, President and CEO of Sotheby's International Realty Canada. "The greatest challenge that they are facing is the sheer lack of housing supply across every price point and housing type. This shortage is placing a chokehold on real estate markets that would otherwise be primed for healthy activity and will mean that properties priced appropriately for the market will see qualified interest and uptake in the coming months."

According to Kottick, prices have stabilized across Canada's luxury and conventional real estate market despite the build-up of consumer demand. In light of elevated interest rates and carrying costs, prospective buyers and investors are discerning, strategic and unwilling to bid up properties beyond current market values. 

https://sothebysrealty.ca/insightblog/en/2023/04/19/top-tier-real-estate-spring-2023-state-of-luxury-report/

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