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The Winners and Losers of Canada's Luxury Home Market in 2019

The Winners and Losers of Canada's Luxury Home Market in 2019

(Bloomberg) -- Luxury-home markets across Canada’s biggest cities tumbled last year on the heels of regulations set by the federal and provincial governments to curb soaring prices and debt. Here’s what brokerage Sotheby’s International Realty Canada expects for 2019.

Toronto

In Canada’s biggest city, luxury sales -- homes priced above C$1 million ($753,000) -- took a hit in early 2018 but gained traction in the second half of the year, buoyed by steady economic growth and population gains that significantly beat the national average. Demand for high-end real estate is projected to outpace supply and continue driving up prices through the first quarter.

The Winners and Losers of Canada's Luxury Home Market in 2019

Vancouver

The West Coast city will push further into a buyers’ market. New provincial taxes and rules enacted last year left an excess supply of high-end listings. Luxury sales dropped 36 percent in the second half from a year earlier and are expected to retreat further in the first three months of 2019 while inventory continues to rise.

Calgary

Luxury sales -- which fell 10 percent last year from 2017 -- are still facing pressures from weaker oil prices. And with forecasts lowered for general investment in the city, lukewarm demand for real estate is expected to persist.

Montreal

High-end home sales in the city reached new heights in 2018, jumping 20 percent from 2017, driven by the strong economy, employment boom and rising investment in public infrastructure. The market is expected to stabilize in the first quarter.

To contact the reporter on this story: Natalie Wong in Toronto at nwong133@bloomberg.net

To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Christine Maurus

©2019 Bloomberg L.P.