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Winnipeg is one of the strongest markets
Published September 19, 2024 • 3 minutes reading time
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In Winnipeg, luxury home sales increased 61.9 percent in the first eight months of 2024 compared to the previous year. Photo by JASON HALSTEAD/WINNIPEG SUN FILES
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The Canadian luxury real estate market was largely stable in 2024, with smaller cities like Winnipeg seeing significant growth.
According to the Royal LePage Carriage Trade Luxury Market Report, Winnipeg saw luxury home sales increase 61.9 percent year-over-year in the first eight months of the year, making it one of the strongest performing markets. In contrast, larger markets such as Toronto and Vancouver saw more modest changes. Luxury home prices rose 3.9 percent in Toronto, while they fell slightly in Vancouver and Montreal, by 1.8 percent and 2.8 percent, respectively.
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“Luxury markets in the Prairie provinces saw some of the largest year-over-year increases in sales activity,” the report said, noting that Edmonton and Calgary also saw notable growth in the luxury segment. Royal LePage attributed the strong performance in smaller cities to continued demand from buyers from other provinces, a trend that has helped the Prairies remain resilient over the past three quarters. Alberta in particular has benefited from this migration, as the real estate markets in Calgary and Edmonton continue to attract buyers from other provinces.
Larger markets such as Toronto and Vancouver saw less dynamic growth in luxury home sales. While luxury home prices rose moderately in Toronto, Vancouver and Montreal saw slight declines. According to Phil Soper, CEO of Royal LePage, the slower growth in larger cities reflects the unique dynamics of luxury real estate. “At the high end of the market, homes typically change hands more slowly,” Soper said, “as the pool of potential buyers narrows, home prices rise.”
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Soper also noted that luxury home buyers are less influenced by economic factors such as high interest rates compared to the overall market. “It's common to buy expensive homes with very large down payments or even entirely with cash,” he said.
According to the real estate franchisor with more than 20,000 members across the country, consumer confidence is another driving factor in the luxury market's resilience. Many luxury buyers remain optimistic about the long-term stability of the Canadian real estate market and are willing to invest in either fully renovated properties or custom-built homes despite the high cost of construction. “Luxury buyers typically have the means to be picky,” Soper said, emphasizing that they prioritize quality, location and long-term appreciation potential when making their decisions.
The federal ban on foreign buyers, which came into effect in 2023 and was recently extended to 2027, has had minimal impact on Canada's luxury real estate market. Although the ban was intended to reduce demand from international investors, it has had no significant impact on prices or inventory.
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“The ban on foreign buyers has had virtually no impact on real estate prices in Canada,” Soper said, pointing out that the vast majority of luxury home buyers are Canadians.
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Looking ahead, Royal LePage expects continued luxury activity in Canada's major cities, with sales forecast to increase in the fall market. While smaller markets like Winnipeg and Edmonton led the way in 2024, the company expects luxury home sales to increase across the country.
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