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Big year expected in Vancouver’s luxury market
Luxury home sales in Vancouver are expected to keep rising through 2021, according to a new report from Sotheby’s International Realty Canada.
Sales in the city’s high-end housing market rose year-over-year by 56% and 73% in January and February, respectively, which Sotheby’s attributes to pent up demand, low interest rates, renewed market confidence and a desire to move into lifestyle-congruent homes, the impetus of which was the COVID-19 pandemic.
“Luxury residential real estate sales over $4 million (condominiums, attached and single family homes) increased 41% year-over-year to 45 properties sold in the first two months of 2021; one property sold over $10 million during this time, where none had sold in this ultra-luxury price range during the same period in 2020,” said the report.
“Luxury property sales between $2–4 million increased 57% year-over-year to 193 properties sold. The sale of properties between $1–2 million experienced year-over-year gains of 52% to 527 properties sold. Overall residential real estate sales over $1 million were up 53% to 765 properties sold in the first two months of the year.”
Single-family homes were the most popular type of luxury home purchased in the City of Vancouver, and as a result it sparked heated bidding wars. Locals weren’t the only people enquiring about the city’s luxury homes, as international buyers reemerged in the city following a pandemic-induced lull.
“In the first two months of the year, luxury single-family home sales over $4 million increased 29% to 36 homes sold, with one home sold over $10 million compared to zero during the same period in 2020,” said the report. “Single-family home sales between $2–4 million increased 65% to 162 homes sold. Conventional home sales between $1–2 million increased 33% to 179 units sold. Overall, $1 million-plus single-family home sales were up 44% year-over-year to 377 homes sold, as the benchmark price for a single family home in Vancouver West and Vancouver East rose 8.5% and 9.5% year-over-year, respectively, to $3,203,200 and $1,565,800 in February 2021.”
Luxury condo sales in Vancouver, however, couldn’t keep up with the single-family and attached home segments, but consumer confidence ameliorated in January and February 2021, when sales for condos priced over $4 million rose by 75% to seven units sold.
“$2-4 million sales contracted a nominal 6%, or one unit, year-over-year to 16 units sold, while $1-2 million condominiums sales rose 48% year-over-year to 179 units sold,” said the report. “Overall condominium sales over $1 million increased 42% year over year to 202 units sold in January and February 2021.”