VIDEO: How the luxury real estate market is doing in Canada

Kingsley Ma, Area Vice President for RE/MAX Canada, discusses the real estate company’s 2025 Spotlight on Luxury Report.

PRESS RELEASE

TORONTO, March 27, 2025 /CNW/ — Luxury home-buying activity ramped up early in the year but the threat of looming tariffs and resulting economic uncertainty stifled burgeoning housing markets, according to a new report released by RE/MAX Canada.

RE/MAX Canada’s 2025 Spotlight on Luxury Report examined luxury real estate trends and developments in 12 major Canadian housing markets in the first two months of 2025 compared to the same period one year ago, and found that smaller markets with lower price thresholds experienced greater sales activity, while higher-priced markets saw a contraction in year-over-year sales. Luxury home sales increased in 75 per cent of markets (nine/12), with eight markets experiencing double-digit percentage increases including Saskatoon (+100 per cent), Island of Montreal (+78.6 per cent), Edmonton (+69.7 per cent), Ottawa (+51.5 per cent), Halifax Regional Municipality (+42.9 per cent), London–St. Thomas (+22.4 per cent) and Calgary (+11.5 per cent). Luxury sales in Winnipeg increased 9.5 per cent. Meanwhile, reporting double-digit declines in year-over-year sales were Hamilton (-41.2 per cent), Greater Vancouver (-12.8 per cent) and the Greater Toronto Area (-11.2 per cent).

“Canadian homebuyers expressed solid enthusiasm for luxury real estate of out the gate in 2025, with growing consumer confidence, robust stock market performance and a more favourable lending environment stimulating activity at all price points,” says Kingsley Ma, Area Vice President at RE/MAX Canada. “Unfortunately, the climate changed quickly amid increased political tensions between Canada and the U.S. as a trade war ensued and tariffs on goods were levied by both countries, fuelling uncertainty.”

Secondary factors have since contributed to overall concerns, including recent volatility in stock markets. For some would-be high-end buyers, the deterioration of stock portfolios, even on paper, have given reason to pause. U.S. holdings in the Nasdaq, S&P 500, and the Dow are down from the start of the year, with some markets nearing correction territory before rebounding. That, combined with jitters over an upcoming federal election in Canada, have curtailed activity in the luxury segment, particularly in larger markets including the Greater Toronto Area and Greater Vancouver.

RE/MAX found the lower- to mid-range price points of luxury remain in greatest demand in most urban centres. The Greater Toronto Area (GTA), where the uber-luxe segment has proven quite resilient, was the only outlier, with sales over the $7.5-million price point up considerably over year-ago levels. Seven properties have changed hands year to date in the GTA, including four over the $10-million price point.

Meanwhile, recent federal government changes including the higher $1.5-million cap on CMHC-insured mortgages, provided a lift to luxury home-buying activity at higher price points in several markets at the outset of the year. Luxury sales in Edmonton and Saskatoon were directly impacted by the increase, which came into effect in December 2024. With the price point for luxury starting at $1 million in Edmonton and $700,000 in Saskatoon, the move has provided buyers with more leeway in terms of smaller downpayments, while 30-year amortization periods have helped to lower monthly payments.

Top-tier condominiums over the $3-million price point have also experienced stronger activity in Greater Vancouver and the Greater Toronto Area despite the current market climate. Fifteen properties changed hands in Greater Vancouver in the first two months of the year, up from zero the previous year, while 12 condominiums were sold so far this year in the GTA, compared to 11 sales between January and February 2024.

“Nearly all markets have been bolstered by population growth in recent years,” says Samantha Villiard, Vice President of Regional Development at RE/MAX Canada. “In-migration and immigration continue to play a significant role in supporting demand at luxury price points in markets including Calgary, Edmonton, Saskatoon, Halifax Regional Municipality and Moncton, albeit at a slower pace than in years past.”

Among those markets noting an especially strong increase in new residents, according to Statistics Canada’s Annual Demographic Estimates, Census Metropolitan Areas, and Census Agglomerations: Interactive Dashboard, was Vancouver (12 per cent growth between July 1, 2021 to July 1, 2024); Calgary (21,000 new residents from July 1, 2023 to July 1, 2024) buoyed by interprovincial migration from Ontario and British Columbia; Saskatoon (almost 10 per cent growth in a three-year period); London (with more than 40,000 new residents since July 2022); Island of Montreal (with 132,000 new residents added between July 1, 2023 and July 1, 2024); as well as Halifax (with almost 13,000 new residents between July 1, 2023 and July 1, 2024).

“Despite some pullback in recent weeks, there is a thread of optimism in luxury housing markets across the country,” says Villiard. “The economic upheaval that the threat of U.S. tariffs has brought to Canadian provinces to date has been profound, but underlying buying intentions are healthy. It’s now a matter of timing. Purchasers will move forward when calmer conditions emerge or as they acclimatize to the new normal.”

Solid fundamentals support the long-term outlook for luxury real estate in Canada. For example, a recent Statistics Canada report found total household net worth in the country rose as asset values were buoyed by equity and foreign investments. Household net worth increased over all four quarters of 2024 as households ended the year with nearly $1.2 trillion in additional wealth, compared to the same period at the end of 2023.

High net worth individuals are expected to continue to contribute to the country’s housing market as real estate continues to rank high on the investment list. Just under two million millionaires called Canada home in 2023, up four per cent from the previous year, and expected to climb to 2.4 million by 2028, according to Swiss Bank UBS Group. The latest Knight Frank Wealth Report pegs the number of Canadians with a net worth north of $10 million U.S. at almost 65,000 in its 2025 report.

A 2023 report by the Chartered Professional Accountants (CPA) Canada noted that the largest generational transfer of wealth in Canadian history is already underway, with the Silent Generation and Baby Boomers expected to gift over $1 trillion to their heirs through 2026.

“The wealth transfer in Canada is unprecedented, and we are already seeing the impact of the download occurring in markets across the country,” explains Ma. “While conditions continue to ebb and flow based on the economic climate, there’s no question that this variable will have a positive effect on all segments of housing in the long term. In the interim, pent-up demand will continue to build, borrowing rates should continue to fall, and need-based sales will occur regardless of market conditions. While there may be some economic turbulence in the foreseeable future, the Canadian luxury real estate tends to be quite resilient. Like the ocean, receding levels are often followed by a wave.”

RE/MAX identified the following luxury real estate trends underway in Canadian markets:

• Downsizing is ramping up among aging luxury buyers, as the number of people nearing or entering retirement or becoming empty nesters grows. Yet, downsizing doesn’t look like it once did, as Boomers and Generation X redefine the trend by making lateral moves at similar price tags but with smaller, easier-to-maintain footprints.
• Multi-generational living is on the upswing at all price categories and the luxury market is no exception, with increasing demand for multi-generational homes noted in Calgary, Winnipeg and Ottawa. Builders are taking note, with some incorporating secondary units or suites in new luxury builds, while more custom-build end users also design with secondary suites in mind. This trend can take many forms, from a second home or guest house on a rural or acreage luxury property to a carriage house or in-law quarters in traditional inner core neighbourhoods. The trend is bolstered by the ‘sandwich generation’ as a greater number of Generation X and Millennials become caregivers or accommodate adult children who are living at home longer.
• Infill and new construction continue unabated in Edmonton, which recorded the most housing starts since 1990, as well as Saskatoon, Winnipeg, Hamilton, London, Moncton and Halifax. In Greater Toronto, builders have paused on speculation and end users are now hesitant to move forward as tariffs threaten to increase construction costs. In fact, most markets noted that new construction would likely slow if the trade war continues.
• In half of all markets analyzed, peripheral areas outside the urban core were attracting more luxury buyers, as some look to stretch their dollar or seek greater lot sizes.

Regional Overview

Greater Vancouver Area

Despite a strong start to the year, sales of luxury detached housing in the Greater Vancouver Area fell short of year-ago levels in the first two months of 2025, as concerns over trade wars and election jitters rattled the market. Sales of detached properties over the $3-million price point fell by 21.4 per cent to 135 units between January and February 2025, down from 172 units during the same period in 2024. Condominiums, however, bucked the downward trend, with 15 units sold so far this year, compared to zero in the first two months of 2024.

Average price has held relatively steady in light of current downward pressure, with detached housing values rising just over two per cent to $4.2 million, up from $4.1 million one year earlier. Condominium average price hovered at $4.3 million for the 15 properties that changed hands. The most popular areas with today’s luxury buyers include Westside communities such as Shaughnessy, Kerrisdale, and West Point Grey as well as West Vancouver.

While sales at the lower end of luxury have been stimulated by the Bank of Canada cuts to the overnight rate, which have served to bring down interest rates on variable rate mortgage, recent volatility in the stock market has buyers in the uber-luxe segment of the housing market adopting a wait-and-see approach. Vacancy taxes (2.5 per cent applied on the total value of the property annually) on homeowners who are not living in their property six months and a day per year are also impacting sales, with an increasing number of buyers moving to Whistler and other parts of the country where there is no vacancy tax. To illustrate, nine detached sales were reported in Whistler over $3 million in the first two months of the year, compared to eight in 2024. Some luxury buyers are moving farther afield to markets including Burnaby, Maple Ridge and the Fraser Valley’s Langley communities where their dollar stretches further.

Inventory levels are a growing concern, given the influx of newcomers to the Vancouver CMA. Statistics Canada noted that the Vancouver market added 127,000 people in the one-year period leading up to July 1, 2024, propelling the city’s population to 3.1 million in its population estimates for subprovincial areas, 2024. Since 2021, the population has experienced an increase of 12 per cent.

The Foreign Buyer’s Ban continues to have an impact on the high end of the market, with global purchasers including those from the US shut out of the Vancouver market. The elimination of the ban would likely prop up residential activity in the Vancouver Area.

Given the strong start early in the year, homebuying activity at the top end of the market is expected to re-gain momentum once economic and political stability returns to the province. It may take several months before the issues between Canada and the U.S. are ironed out, but the longstanding relationship between the two countries should ensure a peaceful resolution, which should help stabilize stock markets both north and south of the border.

Calgary

While concerns regarding the impact of future US tariffs on the oil and gas industry and the upcoming federal election exist, there appears to be nominal pullback in Calgary’s luxury housing market with sales over $1.5 million up more than 11 per cent over last year’s levels. Sixty-eight properties changed hands in the first two months of 2025, up from 61 per cent during the same period in 2024.

The city has been a choice destination for buyers from Ontario and British Columbia throughout the pandemic and the trend continues, with interprovincial migration in the Calgary CMA up by close to 21,000 residents between July 1, 2023 and July 1, 2024–the highest net gain in over 20 years. The Calgary CMA also reported the fastest population growth rate in the of all CMA’s over the past 20 years at 5.8 per cent, according to Statistics Canada’s Population Estimates: Subprovincial areas, 2024.

Although migration has been a contributing factor in recent years, the city’s thriving economy has played a substantial role in the uptick in demand for luxury product. A strong oil and gas industry, an emerging tech sector, and the city’s efforts to further diversify the economy and bring new business to the area are starting to pay off.

Calgary’s luxury segment represented approximately 2.2 per cent over the overall market share this year, up from 1.6 per cent reported during the same period one year ago. The lion’s share of sales at the top end were detached homes at almost 93 per cent, with condominium and semi-detached properties making up the remaining seven per cent. Most of the sales in the market so far this year have been under the $2-million price point.

While traditional luxury enclaves including Upper Mount Royal, Britannia and Elbow Park remain highly sought after, younger move-up buyers are looking to inner city communities such as Altadore and Hillhurst that offer new infill product on generous lot sizes ranging from 60 ft. to 80 ft. frontages. Equity gains realized in recent years are driving some of the activity in the market to date, while the federal government’s recent decision to increase the cap on mortgage insurance to $1.5 million is also making it easier for buyers to enter the market. Inventory levels remain healthy at luxury price points, with more than 200 homes listed over $1.5 million, including 35 uber-luxe properties over $3 million.

Downsizing is also occurring, given that 14 per cent of the local population is now aged 65 and over. As such, many empty nesters and retirees have less use for their existing, oversized homes. Some are moving to condominium apartments while others are downsizing their homes in Calgary and buying vacation properties in BC, Arizona or California, thanks to the proximity to an international airport.

Some multi-generational trends are occurring at the top end of the market this year. Acreage properties housing a primary residence and a secondary home for occupation by adult children or older parents are drawing interest. The trend is also occurring in the city where carriage house suites or apartments over garages are added to existing homes in established neighbourhoods.

Most of the moves in the market today are needs-based and buyers at the top end don’t always incorporate market timing into their decision-making process. Calgary is home to the highest number of millionaires per capita in Canada, so luxury inventory levels tend to fluctuate as real estate trades are frequent and fluid.

Given current market realities, including the threat of tariffs, stock market volatility and the usual federal election jitters, the future remains uncertain right now. However, Calgary has experienced its fair share of adversity and challenging times and emerged stronger.  As a result, the overall and luxury markets are expected to be resilient, with homebuying activity expected to continue at a healthy pace for the remainder of the year.

Edmonton

Interprovincial migration into the Edmonton area continues to spur homebuying activity in the luxury segment, with sales over $1 million up almost 70 per cent in the first two months of 2025. Fifty-six properties changed hands between January and February, up from 33 sales one year ago.

Edmonton’s population gain, largely at the expense of Ontario and to a lesser extent, BC markets, was the highest ever from July 1, 2023 and July 1, 2024, with almost 14,000 new residents added to the city, according to Statistics Canada Population Estimates for Subprovincial Areas, 2024. The overall rate of population growth rose 4.5 per cent in Edmonton, one of seven markets to record their fastest population growth rates in over 20 years.

While most high-end sales are occurring between $1 million and $1.5 million, there have been a number of uber-luxe sales in the market. Infill has gained serious momentum over the past year, with new luxury construction evident in Edmonton’s premier communities including Belgravia, Glenora, Westbrook, South Side, and Windemere. Some buyers are purchasing older homes on large lots sizes with plans to tear down and custom-build luxury homes. Just last year, one buyer purchased two properties side-by-side with a price tag exceeding $4 million with the intention to build one spectacular home. While this is an exception to the rule, the move demonstrates the confidence that’s building in the Edmonton housing market.

The on-again off-again threat of US tariffs has only served to accelerate homebuying activity in the top end, with end users encouraging builders and contractors to ramp up the building process to evade potential tariffs on building materials down the road.

The average price of a home in the top end (over $1 million) now sits at $1.63 million. Some of the activity at the lower end of luxury can be attributed to the federal government extending the cap on mortgage insurance to $1.5 million and increasing the amortization period to 30-years for first-time buyers. Multiple offers have been occurring on single-family homes, especially between $1 million and $1.2 million.

Luxury condominiums are a smaller segment of the overall luxury market, representing seven per cent of sales (4/56). Most of the activity is occurring in the city’s exceptional Legends building in the ICE District. Detached luxury condominiums are also gaining a following in the city, with more builders and developers focusing on this segment of the market.

Edmonton’s affordable luxury entry-point remains a draw, with demand exceeding supply. The ripple effect has taken hold, with overall housing sales and prices climbing in both resale and new housing markets. While there are uncertainties ahead, given US tariffs and the impact on the provincial and local economies, housing inventory levels remains tight, with robust housing starts breaking records set in 1990. Population growth is expected to continue to propel Edmonton’s economy, with in-migration to the city continuing to play a role, despite an expected decline in immigration rates in the year ahead.

Saskatoon

Strong economic growth, coupled with an almost 10 per cent increase in population over a three-year period, have contributed to continued upward momentum in Saskatoon’s luxury housing market. Demand remains strong for high-end homes priced over $700,000, with year-to-date sales doubling over 2024 levels.

Forty-four homes were sold in the first two months of 2025, up from 22 sales one year earlier. While inventory levels have increased heading into the traditional spring market, most properties are selling within a day or two, especially in the coveted $350,000 to $400,000 price point. Equity gains have had an impact on the luxury market in recent years, allowing many homeowners to trade up to larger homes or different communities. The luxury segment now represents six per cent of total residential sales in Saskatoon.

Single-family homes remain most sought after at luxury price points, with new builds in suburban areas such as Aspen Ridge and Brighton seeing the lion’s share of activity. Infill in the city’s most established areas is in high demand, with prices of finished product selling well above $700,000. Although availability is limited, strong demand also exists for wartime bungalows and two-storey properties on generous lot sizes in the city for future custom builds. In many instances, these larger lots are subdivided to allow two new builds on the property. Older homes in Nutana along the Saskatchewan River are also drawing more affluent buyers, with prices typically starting at $1 million plus, but listing inventory is few and far between, with prices typically starting at $1 million plus.

Immigration has played a significant role in Saskatoon’s residential housing market in recent years, with Statistics Canada Annual Demographics Estimates for CMA and Census agglomeration interactive dashboard noting that population growth rose almost 10 per cent between 2022 and 2024.

Neighbouring provinces and communities have also contributed to the Saskatoon’s growth, as the appeal of job opportunities and affordable housing attract younger buyers. Saskatchewan’s economic engine continues to create employment, with 14,000 new jobs created in 2024, according to Statistics Canada. The province had the third lowest unemployment rate in the country in 2024, with the annual rate sitting at 5.5 per cent, significantly lower than the national average.

While the possibility of trade wars is top of mind with buyers, there has been no pullback in the market to date. A sense of optimism exists in the province, with each rate drop bringing more purchasers into the Saskatoon housing market, while sellers at the top end continue to take advantage of the current momentum to downsize or make lateral moves. As such, healthy homebuying activity and price appreciation is forecast for Saskatoon for the remainder of the year.

Winnipeg

Luxury homebuying activity in Winnipeg has edged higher yet again in 2025, with equity gains spurring the most recent spike in sales over the $800,000 price point. Twenty-three freehold properties were sold in the first two months of the year, climbing six per cent over the 21 homes sold during the same period in 2024.

Tight inventory levels continue to exist for housing product under the $500,000 price point, which has prompted greater activity in the move-up segment. Demand is greatest for older, character homes on generous lot sizes in established neighbourhoods, with the highest number of luxury sales occurring in South Charleswood, Tuxedo, South St. Vital, Waverley West, Lindenwood /Lindenridge.  While inventory levels are adequate overall, the number of properties listed for sale at lower luxury price points could be higher given greater demand at the entry-level.

Growing trends in Winnipeg include multi-generational ownership, with some builders and developers now incorporating secondary suites with kitchens and separate entrances in new builds, while others are including bedrooms with ensuites on the main floor of new construction. The transfer of wealth also continues as aging parents and grandparents help new generations attain home ownership.

The possibility of US tariff implementation has shaken some luxury buyers and sellers, but most are moving forward with their plans. Life changes will continue to spark most decisions to move, whether it’s a growing family or one that’s downsizing. Further rate cuts will also encourage more home-buying activity, albeit later in the year. Investors from the Greater Toronto Area and BC’s Lower Mainland are helping to bolster sales in the city by purchasing rental properties. With all segments of the market working in tandem, luxury sales are expected to match 2024 levels by year end 2025.

London

While rapid population growth and strong economic initiatives have served to fuel luxury homebuying activity in London in recent years, talk of US tariffs on the steel and automotive industries have given would-be purchasers reason to pause, with many buyers at the top end of the market adopting a wait- and-see approach.

Luxury sales over $1 million represent approximately eight per cent of overall homebuying activity in London this year. Seventy-one properties sold over $1 million in the first two months of the year, up 22 per cent over the 58 sales that occurred during the same period in 2024. Falling interest rates and government changes including extending mortgage insurance to $1.5 million and raising amortization periods to 30 years helped to propel activity early in the year, but since mid-February, there has been pullback in the market as concerns over the economy and stock market volatility grow.

Housing values at luxury price points have softened as inventory levels climb, with the number of homes listed for sale nearing 400. Communities within the city, including North London and Southwest London, and on the periphery in areas such as Dorchester and Ilderton continue to draw buyers in the top end, with well-priced properties selling within a reasonable amount of time.

Multi-generational housing has experienced increasing demand, with two-unit homes with a detached third unit now permitted in London. Affordability has played a role in the growing demand for these types of properties. Some developers are now building purpose-built, two-unit homes that allow buyers to offset mortgage payments by renting a portion of their home.

Population in the London CMA has soared in recent years to almost 630,000 people, according to Statistics Canada, with the city adding more than 40,000 new residents since 2021/2022. The local government remains vested in economic growth, with significant growth and investment realized in the technology sector, as well as manufacturing and agri-food processing. London remains progressive in land development, ensuring that the infrastructure on tracts of land along Hwy. 401 are shovel-ready for new plants and industry that will bring more jobs to the community. As economic stability returns to the region and interest rates decline further, homebuying activity, especially at the top end of the market, is expected to rebound.

Hamilton–Burlington

Demand for affordable luxury has played a role in the upswing in sales over $2.5 million in Burlington as move-over buyers from markets in Toronto and Oakville took advantage of the city’s blue-chip real estate in the first two months of the year. Eight properties, both on and off the Burlington waterfront, changed hands in January and February, up from four during the same period in 2024.

Luxury sales over $3 million in Oakville posted a 55-per-cent decline–with just 10 sales occurring in the first two months of the year, compared to the 22 reported in 2024. There have been rumours of several off-market sales in recent months that may have indirectly contributed to the slowdown in sales activity at the top end. Inventory levels, down marginally from year ago levels in the Hamilton area, may have also served to hamper luxury homebuying activity this year. Twenty high-end transactions occurred over the $1.5 million price point in January and February, off last year’s pace for the same period by 41 per cent.

Entrepreneurs are by far the most active segment in today’s market. Many are buyers from the 416 who find their dollars stretch further in markets west of the city. Detached properties are by far the most popular housing type, although several large condominiums have sold over the $3 million price point in Burlington. Overall values in Burlington, Oakville, and Hamilton are holding relatively steady, and when rare listings come to market, there are purchasers ready and waiting to pull the trigger. The ‘sweet spot’ for sales in Oakville range from $4 million to $5 million; $3.5 million to $4.5 million in Burlington; and $2 million to $2.5 million in Hamilton.

Custom builds remain a popular option, with today’s buyers looking for older properties in the urban core that are ripe for redevelopment. The trend that once saw purchasers target 75-ft. lot frontages in East Oakville and Burlington has now shifted to smaller lot sizes hovering around 50 ft. These knock-down properties once complete include all the bells and whistles –with some opting to increase basement ceiling heights to accommodate golf simulators. The recent introduction of US tariffs may deter some buyers from moving forward with their plans, given that construction costs are expected to climb.

The market has seen a growing trend where would-be luxury buyers are choosing to rent properties—particularly in the condominium segment—before committing to buying.

Concerns over US tariffs, election jitters at both a provincial and federal level, and interest rates have contributed to softer activity so far this year. These concerns are particularly relevant in Hamilton and Oakville, both of which have manufacturing bases that ship to the US. Once greater stability has returned to the overall market, homebuying activity is expected to gain momentum, placing continued upward pressure on luxury values in sought-after Oakville, Burlington, and Hamilton.

Greater Toronto Area

On the heels of a strong fourth quarter, the Greater Toronto Area’s (GTA) luxury market appeared poised for substantial growth in 2025. Luxury buyers were looking forward to further rate cuts and high-end sellers were anticipating an increase in traffic as pent-up demand was unleashed. Then came the threat of US tariffs in late January–which served to obliterate the optimism building in the market and create uncertainty in the overall economy.

Sales under $5 million were particularly impacted as buyers held back. Just 150 properties sold over $3 million between January and February in the Greater Toronto Area, compared to 169 during the same period in 2024–a decline of 11.2 per cent. Uber-luxe properties, however, continued to climb, with seven sales reported over $7.5 million year-to-date, including four over $10 million.

The luxury condominium market also gained momentum, with sales over $3 million rising nine per cent to 12 units this year, including five sales over $5 million. Last year, 11 properties changed hands over $3 million in the first two months, with three units moving over the $5 million price point.

Similar to the introduction of the municipal government’s land transfer tax in January 2024 targeting luxury properties, the market is expected to acclimatize to the tariffs after the initial shock. There are a large percentage of buyers looking to purchase at 80 to 90 cents on the dollar, though those offers are met with resistance from sellers who are unwilling to give any ground. Sellers who do choose to move at this time will have to ensure that the price of their home is compelling, otherwise it is unlikely to sell.

Patience will be key moving forward. While instability exists in the luxury market, the well has not run dry. Unique properties in sought-after locations will still be snapped up—this is particularly true in Rosedale (nine sales versus three), Leaside (sic sales versus three), and the Bridle Path (seven sales versus two), where the year-to-date sales are up over year-ago levels. Permanent residents who have recently received their cards are also active. The best top-tier deals available are in neighbourhoods where inventory is plentiful.

Most new builds are now undertaken by the end user, although teardown activity has tapered with buyers hesitant to move forward on construction without knowing the true cost of materials. Many are now choosing from available resale product. Builders have wrapped up job sites and are no longer building on speculation.

Buyers in today’s luxury market tend to exercise more caution than sellers. Luxury homeowners, on the other hand, are holding firm, willing to wait out the political and trade climate until it settles. Deals are coming together, but negotiations can be challenging. Once a more stable political and economic picture emerges, a more traditional spring market is expected to materialize, but in May or June as opposed to March. That is expected to put a damper on overall sales this year, unless renewed confidence and pent-up demand is ignited in the back half of 2025. Buyer’s intentions remain strong. They’re simply waiting for a more stable climate or just the right deal.

Ottawa

Luxury homebuying activity experienced a substantial uptick in Ottawa during the first two months of 2025, with single-family detached freehold sales rising almost 57 per cent year over year. Forty-seven properties changed hands over the $1.3 million price point, compared to 30 during the same period in 2024. Condominium sales over $1.3 million have remained stable, with three sales recorded in January and February of both this year and last.

Home sales between $1.3 million and $1.5 million were relatively brisk, while sales over the $1.5 million price point fell short of year-ago levels. Upward pressure on housing values in recent months prompted the sale of several properties in multiple offers. Freehold sales continue to dominate, with single-family detached homes most sought after. Luxury sales over $1.3 million represented seven per cent of total residential sales, while condos at that price point registered less than .05 per cent.

Many luxury sellers, including Baby Boomers and Gen X, are downsizing or making lateral moves into the city to be closer to amenities this year, while others are trading up to larger properties or more desirable areas. Manotick was especially popular for its homes situated on acreage properties. Rockcliffe Park and Westboro remain perennial favorites with the move-up segment of the market. Custom-built homes on one-acre lots in Greely are gaining a following. Suburban markets have also drawn buyers, especially in Kanata, Barrhaven and Orleans. A smaller percentage of sellers are retiring and moving out of the province to Nova Scotia where their dollar goes further. The promise of lifestyle and closer proximity to amenities is enticing. Immigration has also played a role in the market, with newcomers who have settled in buying higher-end housing.

Multi-generational living is becoming increasingly popular in Ottawa, particularly in homes offering separate in-law suites and more flexible layouts. Buyers are also looking for properties with smart home features that are energy efficient. Turnkey homes are also sought after, especially those that have been staged.

Inventory levels remain healthy, with properties that are well-priced and in little need of work moving quickly. Buyers were out in full force out of the gate in 2025, particularly between $1.3 million and $1.5 million, with interest rates trending downward. Sellers, on the other hand, were skittish, although some moved forward with their plans to sell while others are waiting to see how recent politics will play out.

The market was off to a strong start in January and tapered somewhat in February due to several factors, including winter storms, US tariffs and economic uncertainty. With talk of an upcoming election, concerns over job security are expected to persist in coming months, with many working in the public service shelving homebuying plans until there is greater clarity for the future.

Overall, there appears to be greater stability in the upper end this year, with prices holding steady and, in some instances, rising. Interest rates are trending downward, and an increasing number of buyers are returning to variable mortgages. While some sellers are unrealistic in their expectations, those that are more reasonable are successful in selling their homes. Inventory levels are expected to come down as more product is absorbed, with supply and demand working in tandem. While the market trajectory will hinge largely on consumer confidence, homebuying activity is expected to remain relatively stable in the coming months.

Island of Montreal

Declining interest rates have served to bolster luxury homebuying activity on the Island of Montreal in the first two months of the year, with sales building on momentum gained in the final quarter of 2024. Twenty-five luxury properties sold over the $2.5 million price point in January and February of this year, up from 14 sales during the same period in 2024, representing a percentage increase of close to 80 per cent.

Most high-end sales have occurred in the city of Montreal, where Westmount, Outremont, Town of Mont Royal, and Ville Marie (Westmount adjacent) saw the greatest uptick in activity. West Island destinations such as Beaconsfield, Senneville, and Pointe Claire were also popular with upper-end purchasers seeking more land.

An ample supply of inventory exists in the overall market, with almost 120 properties currently listed for sale, an increase over the 86 properties one year ago. Detached homes remain most sought-after, with well-decorated turnkey properties generating the greatest buzz, and some moving in multiple offers. Condominium sales have faltered in recent years, as buyers have become increasingly concerned over rising assessment costs as existing condominiums are impacted by the provincial government’s Bill 16. The Bill mandates reserve fund studies be carried out every five years to ensure the reserve can handle any major repairs or replacements required to the condominium.

Several trends have presented themselves over the past year, including an increasing number of empty nesters and retirees downsizing to pied-a-terre’s and buying property outside the country. There has also been an upswing in demand for luxury duplex and triplexes as buyers move to accommodate older children and parents in adjoining units.

While borrowing has vastly improved over the past year, the real estate market is still facing headwinds heading into 2025, especially given the ongoing threat of tariffs from our US neighbours. However, once economic stability returns to city, the real estate market is expected to blossom. Immigration and in-migration growth between July 1, 2023 and July 1, 2024 added almost 132,000 people to the Montreal CMA, bringing the population to more than 4.5 million. Pent-up demand and an influx of new buyers are forecast to propel homebuying activity from the bottom up, ideally positioning the luxury segment for the future.

Moncton

Stability continues to characterize Moncton’s luxury housing market, despite ongoing economic and political uncertainty in the Canadian market. Luxury sales are up 19 per cent year to date, with 50 properties changing hands over the $500,000 price point compared to 42 during the same period in 2024.

Migration patterns remain healthy in the city, with affordability and quality of life attracting buyers to the province. Retirees and professionals from larger markets such as Toronto and Vancouver are especially active, drawn to Moncton’s low cost of living and reasonable property taxes. Interprovincial migration played an essential role in the upswing in population growth during the pandemic, while immigration to has supported expansion in more recent years. Between July 1, 2021, to July 1, 2024, the Moncton CMA added almost 27,000 people to its population, according to data from Statistics Canada.

Detached homes continue to dominate luxury sales, while condominium and attached home sales remain limited within the luxury threshold. Demand for top-tier properties is greatest in communities including Dieppe (single-family homes), North End Moncton (larger lot sizes), and Central Moncton (luxury townhomes and infill development). Uber luxe homes remain a small segment of the market with minimal transaction activity. Balanced market conditions currently exist in the top end of the market, with months of inventory of homes over $500,000 stable at 4.6 months. Values at the top end have held steady in recent months.

Lower borrowing rates are expected to stimulate buyer activity in the coming months, with an increase in mid-range activity suggesting that buyers are positioning themselves for future trade-up purchases. Substantial equity gains over the pandemic years have contributed to the uptick in sales at the top end, with some sellers now downsizing or simply cashing out.

US tariffs on Canadian imports, expected to increase construction costs in the future, are forecast to slow new developments and lead to higher prices for housing. The luxury market could also be affected as developers adjust pricing to account for increased material costs. Should developers scale back on construction, the supply of existing inventory will likely tighten, creating some upward pressure on values.

Market conditions in Moncton in the short term are expected to remain stable. Resolution of the trade dispute with the US and an upcoming election should raise consumer confidence levels, prompting increased demand for housing in Moncton by mid-year. Interest rate cuts will continue to bolster demand in the $500,000 to $1 million price points, creating greater activity in the luxury segment.

Halifax Regional Municipality

Strong population growth continues to contribute to Halifax Regional Municipality’s housing market in 2025, with the city’s luxury segment reporting a close to 43-per-cent increase in sales over the $1.2 million price point. Twenty properties, including 19 freehold and one condominium, changed hands over $1.2 million in the first two months of the year, up from 14 sales during the same period in 2024.

With demand for housing consistently outpacing supply in Halifax and the surrounding areas, upward pressure on prices have been a factor in increased homebuying activity over $1 million. As sales have climbed, so have listing inventories, with 59 properties currently listed for sale over $1.2 million. More sellers have had the confidence to move forward with their plans to move given solid equity gains in recent years, while economic newcomers to the country have the financial wherewithal to purchase upon arrival. Halifax’s population is up close to 2.4 per cent, with immigration adding almost 13,000 new residents to Nova Scotia between July 1, 2023 and July 1, 2024. Immigration was concentrated in Halifax, with more than 10,000 new Canadians added to the city’s population.

Demand is greatest for luxury detached homes in Halifax’s urban neighbourhoods and exclusive waterfront properties. Bedroom communities with newer construction in areas like Bedford, Fall River, Hammonds Plains, and Porters Lake are also drawing affluent purchasers. Days on market fluctuate depending on inventory, with high-end homes in areas where listings are tight moving in as little as a week, while other areas where homes are more plentiful can be on market for as long as five months. Well-priced uber-luxe properties continue to attract the lion’s share of attention, but some of the city’s most unique properties –including older renovated/unrenovated homes on the peninsula or water frontage estates—present a challenge in terms of pricing, given fewer comparable sales in the area.

Non-resident buyers in Nova Scotia are facing a deluge of taxes, including the non-resident tax and deed transfer tax that add 10 per cent on top of their purchase price, prompting some would-be buyers to extend their search for property to neighbouring PEI. While Chester, Lunenburg, and Mahone Bay remain perennial favourites with out-of-province buyers, higher housing values and taxes have redirected attention to more rural communities such as Truro, Antigonish, Cape Breton and Bridgewater in recent years.

Inclement weather and economic concerns have overshadowed the housing market to some extent over the past month or so. Although the top end continues to experience activity as buyers are more insulated at the top end, consumer confidence in the overall market is waning with concerns over the direction the housing market is heading. Many buyers and sellers have chosen to wait and see what the outcome will be before jumping into the market. With the advent of the spring market and Canadian efforts to mitigate US tariffs through the buy local movement and interprovincial trade, buyers may be able to strike a happy medium. Once the market stabilizes and interest rates fall further and consumer confidence is revived, Halifax is expected to continue its upward trajectory – with luxury sales and prices expected to climb.

About the RE/MAX Network

As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in almost 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals^® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

Mario Toneguzzi

Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.

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