Sales of homes over $1 million in Vancouver increased 25 per cent in 2014 to 3,134 homes – a figure that includes condominiums and townhouses as well as detached single-family homes, according to a report Sotheby's International Realty Canada released January 7.
The global luxury real estate group said that there was no sign of this upward trend abating, and predicted increasing pressure on prices in the $1 million-plus inventory bracket.
Ross McCredie, president and CEO of Sotheby's International Realty Canada, said, “2014 was another benchmark year for high-end real estate in Canada, as demand continued to be fueled by historically low lending rates, a strong economy and steady immigration and migration into Canada's major cities. We expect the market to remain strong well into 2015 … and for demand to outweigh available inventory, especially when it comes to detached single-family homes.
The report comes two days after the Real Estate Board of Greater Vancouver announced that the benchmark price for a detached single-family home in Greater Vancouver had breached $1 million for the first time.
The Sotheby’s report said that the steady rise in the benchmark pricing of a typical, detached single-family home has put such homes beyond the $1 million point in neighbourhoods traditionally considered “conventional”, resulting in the escalation of sales in the “luxury” bracket.
It added that heightened demand and tight inventory contributed to a fall in the typical number of days on market and significant increases in the percentage of homes sold over asking price.
As in 2013, the greatest percentage gains were in the $4 million-plus price segment, which increased 36 per cent year over year.
Detached single-family homes comprised the largest proportion of home sales over $1 million in Vancouver, although not the largest percentage rise, with sales volume increasing 24 per cent in 2014 over 2013.
The volume of Vancouver condominiums sold for over $1 million increased 38 per cent year over year, reflecting the greatest percentage gain of all residential home types.
Attached home sales over $1 million saw an uptick of 15 per cent year-over-year.