Canada’s housing deficit is posing a grave impact even on the elite class. This is applicable even in the nation’s most expensive major real estate market – Vancouver.
Canada’s Housing Deficit
Luxury real estate in Vancouver busted local records in 2021, with sales of mansions priced more than CAD 10 million (USD 8 million) progressing 240%, swifter than anywhere else in Canada, as per a report by Sotheby’s International. Canada’s capital city, Toronto, wasn’t far behind with 238% growth.
Those dealings were inclusive of the highest price ever remunerated for a single-family Vancouver home. Sotheby’s did not reveal how much the property, dubbed Belmont Estate, was sold for, but CTV News estimated a price of CAD 42 million (USD 33.61 million).
High-end real estate has been sustained by the same pandemic-led forces that have emerged Canada’s comprehensive housing market as one of the hottest in the world – low-interest rates and high interest in real estate. Demand for luxury housing has been expanded even more by the surging stock market, making several rich Canadians richer.
However, Canada hasn’t constructed enough houses – big or small, in recent times to keep up with this increasing demand or with population maturity. The number of properties listed for purchase throughout the country has staggered to a record low. In Vancouver, approximately 5,000 homes were for sale at the end of 2021, the fewest in data dating back three decades.
In the luxury sector, real estate worth CAD 10 million (USD 8 million) or above are prevailing in the market for a briefer time, weeks over months, stated the managing broker at Sotheby’s (Vancouver) Kevin O’Toole.
One feature limiting inventories is that luxury home purchasers, snatching on to record-low mortgage rates, are holding onto their old properties for a longer period. Rather than putting their homes up for sale, buyers hold onto their old homes, which in turn slows down the turnover procedure, O’Toole stated.
O’Toole stated that luxury homeowners did not have to leave their luxury homes as they did not know where else they would move. They didn’t want to sell their homes and not have a home to go to.
