In the luxury real estate market, it’s the calm before the storm of activity that will begin as early as January, as “those in the know take advantage of the opportunity” to buy and sell before the spring market unfolds, says Don Kottick, president and CEO, Sotheby’s International Realty Canada.

“As we conclude 2024, mortgage rates are coming down. Many buyers deferred until 2025. They went to the sidelines and took a wait-and-see approach.”

However, he says, “We’re starting to see pre-transaction activity pick up, as those prepared to enter the market in 2025 begin reaching out to their Realtors and begin searches in anticipation of buying.”

 

Luxury markets already seeing increased activity

 

Kottick says there has already been an uptick in the conventional luxury market, in Toronto for homes priced “north of $4-million and in Vancouver, north of $5-million. Calgary and Montreal remain relatively affordable.”

Single-family homes are the product of choice and there’s a chronic shortage, he says.

Buyers anticipate rates will stay where they are and those “who find the right home will jump into the market after the holidays,” Kottick says. 

Engel & Völkers Chief Financial Officer Andrew Dinsmore says mortgage rate increases “are not as disruptive to the ultra-premium markets, as these buyers tend to purchase homes with much of the equity paid upfront. Canadian luxury markets largely remain stable as real estate remains an attractive investment.”

Anita Springate-Renaud, broker of record, Engel & Völkers Toronto Central, agrees, saying the luxury ($5-million to $10-million) market in the Toronto area where she works has not been impacted by mortgage rates. 

Many buyers shopping in this market are not worried about mortgage rates or qualifying for mortgages, instead using a significant amount of cash and some sort of other form of financing to purchase, she says. “They never buy fully in cash, using a line of credit or other forms of financing.”

 

Inventory is scarce in urban markets

 

Springate-Renaud says, “Luxury outside the city is moving slowly, but inside (Toronto) things are moving. There’s not a lot on the market. A house that was listed for $9-million sold in a week,” she says, adding that in the “$5-million to $10-million price range, potential buyers still have money. Properties in that range are not as impacted as $3-million and under by mortgage rates.”

However, the market has slowed in Ontario’s cottage country, including Collingwood and Muskoka, as well as in horse country, such as King City, Ont. 

The spring real estate market begins early in Toronto when “many people list their homes and try to take advantage of less competition within their neighbourhoods,” while Ottawa and Halifax activity traditionally peaks in spring and fall, Kottick says.

Although there has been a lot of intraprovincial migration, with Ontario, B.C. and Calgary being popular destinations, he expects transactions will become more local as buyers move up or down, or change product type.

He suggests sellers get their properties on the market sooner rather than later to get ahead of the growing inventory.

 

Realtors should learn the nuances of each property 

 

Dinsmore says, “In Toronto, in contrast to the broader housing market, “the luxury housing market ($6-million and above) has seen a significant increase in sales activity, with a rise in the number of units sold in the second half of 2024 compared to the first half.”

Vancouver’s luxury market is stable, he says. “However we are seeing that buyers will pay more for homes in good condition with unique features rather than relying on valuing homes based on nearby comparable sales.

“Nova Scotia’s luxury market has traditionally attracted affluent out-of-province and international buyers, often seeking vacation or second homes. Higher interest rates slowed demand earlier this year, but a recent 50-basis-point rate drop has sparked renewed interest and some offers in sought-after areas like Halifax, the South Shore, Cape Breton and coastal regions,” he says.

To plan for 2025, Dinsmore says real estate advisors should specialize in their local neighbourhoods to better understand the nuances of each property. “This insight helps clients evaluate whether they’re overpaying or getting a fair deal, as differences can vary significantly from house to house and street to street.”

 

Here are a few luxury and ultra-luxury properties on the market in Canada.

Address: 30 High Point Rd. Toronto

Price: $28-million

Details: 8 bedrooms, 13 bathrooms

Listing agent: Jane Zhang, Sotheby’s International Realty Canada

MLS# C9003662

A rare landmark residence in the quietest part of the Bridle Path, this mid-century masterpiece is nestled into a 2.12-acre landscape that includes lush landscaping for privacy.

The Canadian Tire founder’s concrete mansion was designed by architect John C. Parkin. Its light-filled interior includes a four-storey atrium, skylights and large windows.

With 26,000 square feet, it’s suitable for lux living and entertaining on a mega scale, and even has space for a band at the bottom of a 3.5-storey atrium stairway. It also has an indoor and outdoor pool. The agent says, “It’s a phenomenal estate to add to your life’s most valuable collections.”

Video: https://www.youtube.com/watch?v=QjPwmBMJlMA

Photo and Videography credit: Sotheby’s International Realty Canada

 

Address: 45 Park Lane Circle Toronto Ont.

Asking price: $29.8-million

Details: 5+1 bedrooms, 9 bathrooms

Listing agents: Peter Torkan and Paige Torkan,  The Agency Brokerage

MLS# C9374312

In the posh-and-prestigious Bridle Path area, this private gated modern estate was remodelled in 2024. The Los Angeles-style home offers 17,000 square feet of living space on over two acres with a 300-foot frontage.

Built with premium concrete, steel, glass and stone, the home has skylights, glass elevators, a theatre room and a fully equipped gym, a spa with a steam room, a bar and a wine cellar. There are five-plus-one bedrooms and nine bathrooms in total.

Exterior features include a tennis court, a swimming pool, a whirlpool and a heated driveway.

Video:  https://www.instagram.com/reel/DA1Hem1v6N9/

Address: 2106 SW Marine Dr. Vancouver B.C.

Price: $27.5-million

Details: 6 bedrooms, 7+2 bathrooms

Listing agent: Victor Cheung, Sotheby’s International Realty Canada

MLS# R2893685

The Gables Estate, a Tudor residence that’s described by its listing agent as a “testament to unparalleled luxury and contemporary refinement”, is on a 4.25-acre lot offering a view of the Gulf Islands.

The 10,709-square-foot home, built in 1929, has six bedrooms, nine bathrooms, a bright living space filled with natural light and goodies such as a home theatre and wine cellar.

The grounds feature extraordinary spaces for entertaining or quiet enjoyment, an outdoor kitchen, English rose gardens, a boating pond, a path through a forested canopy, a putting green, multiple decks and the piece-de-resistance, a 65-foot infinity pool.

Video: https://www.realtor.ca/real-estate/27027671/2106-sw-marine-drive-vancouver

Address: 5425 Stonebridge Dr. Whistler B.C.

Price: $25-million

Details: 11 bedrooms, 11 bathrooms

Listing Agents: Gregg Baker, Mike Rampf, Engel & Volkers Vancouver

MLS# R2916096

This world-class mountain estate is set on 5.5 acres offering views of Whistler and Blackcomb mountains. It has three buildings — an 8,333-square-foot main residence, a 2,102-square-foot guest house and a 405-square-foot auxiliary house that together offer 11 bedrooms and 11 bathrooms. The main residence features curved timberwork, extra-high ceilings, floor-to-ceiling windows and luxury finishes. The property is designed for four-season entertainment and an indoor/outdoor lifestyle. Highlights include an outdoor kitchen, gas fireplaces, a pizza oven, a built-in barbecue, a heated infinity pool and hot tub, and trails for hiking, snowshoeing and bike riding. 

Video: https://www.realtor.ca/real-estate/27302538/5425-stonebridge-drive-whistler