Expensive Houses Are Still Popular

In Canada fancy houses are doing better than regular ones. A company called Engel & Volkers said this in a report. In Toronto houses that cost more than 8 million Canadian dollars went up in price by 4.7 percent. This happened in the first half of 2024. Regular houses only went up by 1.3 percent. Even though fewer fancy houses are being sold their prices are still going up.

More Expensive Houses For Sale

Toronto saw more houses for sale that cost over 1 million Canadian dollars. This helped balance out the market. There weren’t enough houses before. But because banks are charging more for loans many people are waiting to buy. In the first six months of 2024 3410 houses over 1 million dollars were sold. But 7259 new houses in this price range were put up for sale.

People Are Waiting To Buy

All over Canada people are waiting to buy houses. They want the Bank of Canada to lower interest rates. The bank did lower rates in June. This was the first time since 2022. Lower rates might make house loans cheaper. But it might also make people wait longer to buy. They might think prices will go down more.

Apartments Are Having Problems

In Toronto apartments are not selling well. People who bought apartments to rent out are now selling them. In May there were 8183 apartments for sale. This is a record high number. There are too many one-bedroom apartments. These were built for people to buy and rent out.

Other Cities Are Doing Okay

Some other parts of Canada are doing well with expensive houses. In Vancouver houses between 2 and 4 million Canadian dollars went up in price by 4.7 percent. In Halifax more expensive houses were sold. They sold 5 percent more houses over 1 million dollars. 117 of these houses were sold.

Experts Think Expensive Houses Will Be Okay

Anthony Hitt is a big boss at Engel & Volkers Americas. He thinks expensive houses in Canada will be fine. Even though fewer houses are being sold the market is strong. He says people still think expensive houses are a good way to invest money. They think it’s safe to buy these houses.

What This Means For Everyone

This news is important for people who want to buy or sell houses. If you want to buy a fancy house you might have to pay more. If you want to sell one you might get a good price. For regular houses things are slower. But remember house prices can change quickly. It’s always good to talk to someone who knows a lot about houses before you buy or sell.