The Vancouver luxury housing market saw slow sales in 2024 compared to the year prior, which a new report suggests could mean good things for prospective buyers.
Sotheby’s International Realty Canada has published a report on the Vancouver luxury housing market and what it might lead to this year. The report’s general consensus is that in 2024, sales lagged “as buyers’ market conditions took hold and $4 million-plus residential sales closed the year 11% below 2023 levels.”
On a positive note for the Vancouver luxury housing market, inventory accumulated, shifting conditions in favour of homebuyers. Despite that, Sotheby’s says that “price expectations of prospective sellers were often misaligned with market realities.”
Sotheby’s added that reality led to “statements in individual negotiations and states across the broader market.”
We shared many stories about luxury home sales in 2024, with many selling for well the asking price and other properties seeing major price drops. When we compare 2024 sales to the year prior, we see that residential sales transactions over $4 million were down 11%.
“Sales over $10 million were down 29% year-over-year. Overall residential sales over $1 million were up a modest 4% from 2023 levels.”
Demand continued to trend in favour of single-family homes, but sales over $4 million were down 15% year-over-year “to comprise 89% of residential sales above this price point in 2024.”
“The city’s top-tier condominium market endured buyers’ market conditions in 2024; however, transactions over $4 million were up 26% compared to 2023 levels. Overall, residential real estate sales over $1 million closed the year at levels that were 4% higher than in 2023.”
Other markets in Canada fared better, and Sotheby’s says that “consumer confidence and
sales activity lagged that of other major metropolitan areas.”
Sotheby’s says buyers adopted a wait-and-see attitude, hoping for more “monetary easing.”
“Flagging confidence in the economy and the city’s livability challenges amongst Metro Vancouver businesses and residents also clouded top-tier housing activity.”
Looking ahead, Sotheby’s says there’s “cautious optimism” shaping the outlook for 2025.
“The current buyers’ market spans all housing types with variation by location and property condition. However, Sotheby’s International Realty Canada experts pinpoint the pre-sale and resale luxury condominium markets as presenting favourable investment opportunities given lingering oversupply, softening prices and falling interest rates.”
The City of Calgary led the country in luxury real estate growth, outstripping Toronto, Montreal and Vancouver in annual percentage gains in top-tier transactions.
“Despite political volatility, Canada’s luxury real estate market remains primed for favourable buying opportunities in the initial months of 2025.”