Despite all the negative press in Canada’s real estate market in the past six months, investors are still making their own decisions and putting money into the market, according to a new report.
The Top-Tier Real Estate Report, published yesterday by Sotheby’s International Realty Canada, showed that over $1 million sales in the residential real estate market continued to trend upward in 2014.
“We continue to see a lot of strength in terms of transaction volumes, as well as capital appreciation,” said Ross McCredie, president and CEO at Sotheby’s International Realty Canada. “And that’s the case across Canada.”
The GTA saw the strongest growth in 2014, with a sales volume increase of 38 per cent year-over-year, while Vancouversaw 25 per cent, Montreal saw 21 per cent and Calgary saw 16 per cent.
In fact, demand for single-family homes in the $1 to $2 million range, especially in cities like Toronto and Vancouver, escalated significantly.
“If you’re looking for a long-term real estate investment, if you buy a high-quality product in a good location, both Toronto and Vancouver are going to be very strong markets going forward,” said McCredie.
He also said that smaller markets, such as areas outside Toronto and Vancouver, are seeing strong growth, pointing specifically at Victoria, Kelowna and Whistler.
He added: “In the last six or seven months, we’ve seen more confidence in those markets, higher transactions and price increases.”