Vancouver's wealthiest families can breathe a sigh of relief. According to data compiled by Sotheby's International Real Estate, there was a 35 percent increase in luxury home sales in 2013 from $3 million to $4 million. In 2013, more than 835 elite home sales took place. This number reflects the real interest of the wealthy in Vancouver real estate. Home sales actually hit a 10-year high in 2013, which is good for both home buyers and sellers.
Three factors contributed to the recovery. 1. Low interest rates, 2. High levels of immigration, and 3. Limited supply of homes. Low interest rates have made expensive homes readily available to the wealthy and especially palatable to those buying homes in the tens of millions of dollars. Of course, high-rise homes aren't the only dwellings that have benefited from low interest rates. As a result, the sale of detached houses has also increased sharply in the last 2 years. High levels of immigration also directly affect the upper class market. Many immigrants come from China and bring lots of cash with them. These investors see Vancouver as an opportunity and are equally attracted by the low interest rates. The combination of the influx of immigrants and the financial situation in Vancouver has created a serious recovery in this market. Last but not least, the limited supply of extravagant homes made them a hot commodity. Buyers are willing to pay a higher price if it means landing their dream home in fairytale Vancouver. The market is not oversaturated with opulent properties, so homes in this niche market don't stay for sale very long.
The other good news on the expensive home front is that this trend is expected to continue. Economists don't expect the numbers to change on the interest rate or immigration fronts, meaning the market will continue to grow. Although new real estate tends to focus on apartments and townhouses, Vancouver can expect significant growth in real estate development and building expansion. Many high rollers come to Vancouver for its views, culture and business potential, bringing with them cash that burns a hole in their pockets. Because of this, Vancouver will continue to see a rebound in the luxury home market
