The number of homes selling in Calgary for more than $1 million have shot up 46%
The report found Calgary’s six per cent population growth “exerted unprecedented pressure” on its housing supply. The number of homes selling for more than $1 million in the city grew by 46 per cent in the first half of 2024, while homes selling for more than $4 million climbed by 75 per cent.
Calgary also led the way when it came to interregional migration, having welcomed 26,662 new people from other parts of Canada, while Toronto (-93,024), Montreal (-20,624) and Vancouver (-18,399) each experienced net losses.
“While record-setting population gains in Canada’s largest metropolitan areas continue to be powerful influences on the local real estate market, interprovincial and interregional migration patterns are now leading signals for local economic sentiment, core housing demand, and conventional and luxury real estate market performance overall,” Don Kottick, chief executive of Sotheby’s International Realty Canada, said in a news release.
“The migration of residents, and their talent and financial capital away from cities like Toronto and Vancouver to communities in surrounding regions or to provinces such as Alberta foreshadow trends in sales activity, housing prices and real estate market performance. This applies to the cities they are leaving and the markets they are moving to, and it applies across the conventional and luxury markets.”
In Vancouver, interprovincial migration fell to its lowest level in more than 20 years, with the city losing 4,795 people to other provinces — a loss that is reflected in its real estate market.
In the first half of 2024, residential sales of homes valued at more than $4 million were down 16 per cent compared to the same period last year, while sales of those over $10 million were down 50 per cent.
Luxury condo sales of more than $4 million were up 27 per cent, though the report noted the luxury condo market was soft due to a “confluence of elevated prices and carrying costs, a shift in luxury consumer preferences towards single family homes and problematic conditions in the city’s downtown core.”
In Montreal, which remains firmly in a “buyer’s market,’ according to the report, home sales of more than $4 million climbed 29 per cent, while those of more than $1 million climbed 25 per cent.
“Prospective home buyers and investors continued to navigate the market at a leisurely and empowered position, with extended home searches and negotiations the norm,” the report states.
The west is best?
When it comes to growth in gross domestic product over a 20-plus year period, it sure appears so.
Real GDP growth in western Canada since 2000 has largely outpaced the rest of the country and continues to stand out despite the current economic slowdown. Even British Columbia, which has been disproportionately hurt from Bank of Canada rate hikes, outperforms the eastern provinces.
This trend may not last for the next decade, however, as emissions reduction target could put a damper on continued growth in the region.
- Bank of Canada will announce its interest rate decision at 9:45 a.m. ET and release its Monetary Policy Report, followed by a press conference with governor Tiff Macklem.
- Today’s Data: U.S. home sales for June
- Earnings: AT&T Inc., Ford Motor Co., Teck Resources Ltd., Rogers Communications Inc.
- Foreign workers battle fake jobs, exploitation as Canada’s immigration programs get tougher
- Canadian tech company valued at US$3 billion after latest round of fundraising
- Scotiabank sees Bank of Canada rate at 4% by end of 2024
