According to Engel & Völkers’ 2019 Spring Market Report, Ottawa is predicted to join Montreal as the next luxury real estate hot spot in Canada.
Engel & Völkers first ever Canadian spring market report provides an outlook for major Canadian luxury markets such as Toronto, Montreal, Vancouver, Victoria, Ottawa, and Muskoka & Collingwood.
Key findings indicate that as a result of more condo projects flooding the market, population growth, and the local economy’s steady growth, Ottawa will likely continue to be an emerging hot housing market in Canada.
“The average sales price of a condominium-class property is $307,659, up 14.3 per cent from April last year,” the report says.
“The average sales price of a residential-class property is $488,729, up 7.4 per cent over April 2018. Year-to-date numbers show average price increases of 6.6 per cent and 8.7 per cent for residential and condominiums respectively.”
Other highlights in the report include:
Toronto & Montreal
Engel & Völkers anticipates prices will climb, especially in the condo market. The average sales price in Toronto has increased by 2.6 per cent year-over-year to $788,335 in March, and housing inventory was down 1.78 per cent this April compared to last year. Montreal’s total sales in March were up 30.66 per cent month-over-month and one per cent year-over-year, with single-family dwellings having the largest increase at 31.49 per cent month-over-month.
Both Toronto and Montreal have very low rental vacancy rates with increasing rents, creating additional buyer traffic in those markets.
Muskoka & Collingwood
Prime cottage country regions, like Muskoka, Collingwood and the surrounding areas, are showing signs of being a balanced seller’s market. These areas are transforming into destinations for long-term residential living catering to retirees and families while maintaining summer getaway status.
Housing inventories remain near historical lows, though a 25.8 per cent increase in active residential listings from the end of April 2018.
Vancouver transitioned into a buyer’s market as sales in March dipped 46.3 per cent below the ten-year sales average for the month – the lowest total since 1986.
Victoria’s luxury market is also transitioning to a buyer’s market with its active listing inventory increasing 37.4 per cent in April compared to last year and properties remaining on the market for longer periods of time. Major factors like the non-resident tax, lower inflation and strict mortgage rules will likely continue to affect the market through 2019.