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Canada luxury real estate market sales fall but don’t blame buyers

Canada luxury real estate market sales fall but don’t blame buyers

People are eager to buy homes, if only there were enough listings

Published Apr 19, 2023  •  5 minute read

Sales of luxury real estate properties were slower in the first quarter of 2023 compared to the same time last year.
Sales of luxury real estate properties were slower in the first quarter of 2023 compared to the same time last year. Photo by Tyler Anderson/National Post

Good morning,

Luxury home sales retreated across much of Canada this past winter, but a lack of buyers isn’t to blame for the pullback and the market is expected to pick up this spring, according to Sotheby’s International Realty Canada.

Sales of luxury real estate properties were slower in the first quarter of 2023 compared to the same time last year, with Toronto, Vancouver, Montreal and Calgary all registering declines, says Sotheby’s latest report on the state of high-tier housing.

Toronto and Vancouver, the most expensive housing markets in Canada, bore the brunt of the slump in sales. In Toronto, sales of luxury homes priced $4 million and higher fell 64 per cent from the first quarter of 2022. Transactions of houses above $1 million also slowed, declining 57 per cent over last year. Vancouver sales of residences over $4 million were down 53 per cent year over year, and sales of dwellings above $1 million fell by 51 per cent.

Montreal’s market also climbed down from 2022 levels, with sales of luxury properties above $1 million declining 43 per cent in the first quarter compared to last year. Residences priced at $4 million and higher experienced a slowdown in sales, too, falling 33 per cent year over year.

Meanwhile, Calgary remains a bright spot in the market amid a growing economy that’s attracting new residents from other parts of Canada. But it too experienced slower sales when compared to the same time last year. Sales of $1-million homes fell 36 per cent compared to the first quarter of 2022. However, Sotheby’s says sales are up 223 per cent compared to the same time in 2020, which shows the underlying strength of the market.

The overall drop in home sales isn’t a sign that buyers have given up on homeownership, however. Sotheby’s blames a lack of listings for the downturn in transactions, and says people are ready and eager to get back into the market to find their dream homes.

“A significant cohort of prospective homebuyers and sellers who were reluctant to make a move in 2022 … are now pre-qualified, highly motivated and anxious to find a home that meets their needs and lifestyle,” Don Kottick, chief executive of Sotheby’s International Realty Canada, says in a press release.

Investors also continue to have faith in real estate, with recent research from Sotheby’s and Mustel Group showing that 60 per cent of city-dwelling Canadians believe property will outperform or line up with their other investments over the next 10 years.

That high confidence, combined with pent-up demand, bodes well for the spring housing market, the report says, providing there is enough inventory to meet buyer intentions. Sotheby’s says many sat on the sidelines this winter, in the hope of more inventory coming online in the second quarter. But listings are expected to stay muted, which will likely constrain sales.

“The greatest challenge that (buyers and sellers) are facing is a sheer lack of housing supply across every price point and housing type,” Kottick said. “This shortage is placing a chokehold on real estate markets that would otherwise be primed for healthy activity.”

Still, don’t expect a lack of listings amid a cohort of motivated buyers to translate into big price gains this spring. Higher interest rates that have pushed up the costs of homeownership are keeping people from bidding up prices further, Sotheby’s says. Indeed, inflation data from Statistics Canada released on April 18 shows mortgage interest costs increased 26.4 per cent last month from March 2022. That should continue to keep a lid on home prices this spring, even as the market picks up.

“Properties priced appropriately for the market will see qualified interest and uptake in the coming months,” Kottick said.

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Inflation appears to finally be slowing, which means interest rate increases are likely off the table, at least for now, writes Kevin Carmichael.

The consumer price index increased 4.3 per cent from March 2022, Statistics Canada said on April 18. That was the smallest year-over-year increase since August 2021.

Excluding food and energy, the year-over-year increase was 4.5 per cent, down from 4.8 per cent in February. Excluding mortgage interest costs, the index increased 3.6 per cent, compared with 4.7 per cent the previous month.

Still, though headline inflation is lower to four per cent than its eight per cent peak, it might not feel like much a of a relief for many households. Find out more about what you need to know about the latest consumer price reading.

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  • 150,000 PSAC members comprised of Canada Revenue Agency and Treasury Board workers walk off the job today in what will be the largest federal public service work stoppage since 1991. Here’s what you need to know about how demands for wage increases could affect inflation
  • Suzanne Clark, chief executive of the U.S. Chamber of Commerce, attends a breakfast event in Ottawa, organized by the American Chamber of Commerce in Canada in partnership with the Business Council of Canada and the Canadian Chamber of Commerce
  • Canada 2020 hosts the Net-Zero Leadership Summit in Ottawa. Speakers include Environment Minister Steven Guilbeault and Northwest Territories Premier Caroline Cochrane
  • Imperial Oil Ltd. holds its 2023 investor day and provides an update on its operations and business strategy
  • The United States Federal Reserve Board releases the latest Beige Book report
  • Today’s data: Canadian housing starts, industrial product and raw materials price indices
  • Earnings: Tesla Inc., Morgan Stanley, IBM Corp., Kinder Morgan Inc., Nasdaq Inc., Equifax Inc., Metro Inc., Alcoa Corp.

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Rich people have problems, too, but the advice financial planner Ed Rempel provides for one couple trying to ensure a comfortable retirement applies just as much to the rest of us as it does to them. Do we have enough money to maintain our lifestyle? How can we pass some money to our kids in a sensible way? Where should I park the capital that’s currently sitting in guaranteed investment certificates? Retirement advice this way.

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Today’s Posthaste was written by Victoria Wells (@vwells80), with additional reporting from Financial Post staff, The Canadian Press, Thomson Reuters and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.

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Lewis Silkin – How is the dollars dominance impacting the luxury real estate market

Lewis Silkin – How is the dollars dominance impacting the luxury real estate market

Interest costs are not the only factor impacting demand from customers, even so. Forex fluctuations have also played a large portion in driving foreign investor urge for food for Uk and European luxurious home.

It goes without the need of saying that the 24{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} fall on GBPUSD in the autumn received the phones ringing and nonetheless this continues just about 6 months on, even with progressive recovery of the pound.

So the issue is, will this dollar dominance carry on during 2023?

As you would be expecting, much hangs in the palms of the Fed and the BoE.

In close proximity to-term dynamics for GBP/USD recommend that even though the pair could rebound higher than the $1.20 threshold, the persistent negative impression of surging vitality rates on British isles phrases of trade will continue to be a key element. Even so, market observers anticipate that the devalued pound may possibly come to be an pleasing proposition as central banking institutions pivot, likely propelling GBP/USD to exceed baseline projections.

Despite becoming 15{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} overvalued from G5 main currencies, the greenback still seems expensive from a valuation standpoint. In accordance to the Oxford Economics’ BEER product, GBP/USD is at this time undervalued by about 8{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96}. If only the Fx marketplace was really driven by worth!

A likely Fed signal to lower costs this calendar year was the true hope for dollar purchasers. Current market industry experts had anticipated that greenback weak point may arise in the course of Q1 of 2023, as we changeover from stagflation possibility characterised by weak progress and higher inflation to a much more conventional late economic cycle marked by feeble expansion and moderating inflation. This change could ease tension on the Fed to hike, hence resulting in a weakening of the greenback. The triggers are still to surface nevertheless with the FOMC preferring to keep correct to its long time period concentrate on of driving inflation down to 2{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96}.

What about house in the Eurozone?

Well as you would hope, we have viewed identical urge for food from the states for residence in Europe as well. Nevertheless my other fifty percent would insist this is entirely down to the achievements of Netflix’s hit demonstrate “Emily in Paris,” I would argue that travel and maintain toward parity on EURUSD charges delivered just as considerably of a motivating aspect.

It is interesting to take note how stagnant GBP EUR remains in spite of so a great deal geopolitical stress and I assume this highlights how equally the British isles and the Eurozone are struggling to draw a distinct study course to beat inflation in the months ahead which in change is building it tougher for buyers to decide on a facet.

With many thanks to our contributor, Benjamin Small, Director at Ibanista. Following 6 years in the field and major main sales desks of two unique currency brokers in London, Ben resolved to use his expertise to give quality consumer services to our private and company customers. He thinks the payments market evolves way too quickly for significant legacy investing floors to respond. The only way to present a quality support was to launch an agile business enterprise that could embrace the variations as they come alongside.

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Denver’s luxury real estate market surged 700{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} from 2013 to 2022

Denver’s luxury real estate market surged 700{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} from 2013 to 2022

The Denver metro area’s luxurious true estate market place expert remarkable expansion about the earlier decade. In 2022, 876 homes offered for at minimum $2 million— a 700{61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} surge considering the fact that 2013.

The common value for all homes in the Denver metro improved by 121 {61deb032f2f3cf43cd91e0a97f017aab274ddbb67b74a5b085bd003b9ac3cd96} from $306,00 to $678,000 in that ten years and redefined what is viewed as a luxurious home.

Product sales of properties priced at $2 million or far more exploded during the pandemic, claims Collen Covell with Milehighmodern.

“People could perform remotely. They experienced appear in this article for vacation and when they didn’t have to be in the office environment, they could purchase in this article.”

Jill Schafer with Kentwood Real Estate suggests many locations, together with Cherry Hills Village, Greenwood Village, Boulder, Denver, and Castle Pines, deliver the most significant-greenback product sales.

Schafer states limited availability caused by improvement limits triggered Boulder residence charges to explode.

People limitations pushed additional luxurious development north into Longmont, Lafayette, Mead, Niwot, and Water Valley in Windsor, she states.

Who are Denver’s luxurious buyers?

Covell divides Denver’s luxury consumers into two camps.

Half relocate from much more expensive marketplaces on the East or West Coasts and have funds to commit.

The relaxation are Denver area prospective buyers who skilled important lifetime changes, this kind of as retirees who elevated their little ones in the suburbs but now want a lesser, extra lavish house in Cherry Creek or more youthful families with a second or 3rd kid who require a larger dwelling with a large garden.

Schafer suggests that Denver’s financial system remains sturdy and diversified, with oil and fuel, telecommunications, biosciences, and drugs staff earning substantial salaries.

“We have superior charges of faculty educated individuals who tend to make extra money.”

Growing desire costs don’t prevent luxurious consumers

Stuart Crowell with LIV Sotheby’s Global Realty says Denver’s luxury promoting is primarily impervious to mounting interest charges and inflation.

“The times on marketplace has held pretty continuous,” he states. “We haven’t seen much softening at this selling price level. Sellers are keen to wait around for a longer time to get their value.”

Because most luxury potential buyers are income buyers, they aren’t as impacted by fluctuating fascination costs, Schafer says.

“Many of these customers have cash mainly because stocks went up through COVID and purchasers weren’t paying dollars on other items,” she states. “Now they notice they can function any where and are ready to devote much more on next residences.”

What luxurious purchasers want

Like homebuyers at other price tag details, luxurious customers want to obtain properties they can use straight away with out waiting for renovations.

“Luxury property consumers want a go-in completely ready residence. They want all the functions you see in new construction,” Schafer says.

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These Posh Properties Are Heating Up The Luxury Real Estate Market

These Posh Properties Are Heating Up The Luxury Real Estate Market

From a palatial Central Park penthouse to a 41-acre private reserve in South Africa.



A breathtaking penthouse in Dubai’s Company Bay listed for about $50 million with Francesca A M of Luxhabitat Sotheby’s Global Realty
(Luxhabitat)

The demand from customers for challenging assets as a haven from stock industry volatility continues to define the hunger for actual estate among the the extremely-large-internet-value cohort.

But not just any acquisition will do for discerning asset bankers as we undertaking into 2023. Trophy qualities have occur a extended way from Richard Branson’s Necker Island. A new wave of tycoons is riding on actual estate worthy of the digital age.

A truly palatial penthouse atop the new Central Park Tower, New York’s tallest condominium at 1,550 toes, is set to turn out to be the nation’s most costly dwelling as it hits the sector for $250 million. Down south, Citadel kingpin Ken Griffin established a new file for a Miami dwelling buy with his $109 million scoop of a 4-acre Coconut Grove compound.

An incredible $59 million penthouse at 2 Park Location in New York City mentioned by Joshua Decide and Stan Ponte of Sotheby’s Global Realty
(Inside Promoting Team)

And Aspen’s Willoughby Way, a renowned bolthole for billionaires, is viewing an inflow of elite newcomers to nearby enclaves. Believe Wall Street West locking in fairness by way of ski-in or backcountry obtain and high quality sights.

Sotheby’s Intercontinental Realty trend experiences reveal a potent uptick in demand for extremely-hospitality qualities. Customers search for stability and sanctuary, but the winning proposition must also hold the guarantee of a solid equilibrium sheet.

In the realm of Dubai prestige actual estate, no reveal established pulses racing very like Volante. At the pinnacle of this popular undertaking rises a sleek duplex penthouse sprawling more than four decadent levels, capped by a two-degree rooftop terrace and lap pool.

A non-public sport reserve and safari lodge in South Africa mentioned for $36 million
(Lew Geffen Sotheby’s Worldwide Realty)

A magnum opus of scale and steel, this four-bed room residence delivers a refined build excellent difficult to overstate, mirrored in the $50 million listing value. Large in dimensions and inviting in style, interiors attribute crosscut Navona marble walls, a grand staircase, and a ten-seat cinema. A dual-degree roof terrace demonstrates off a Mediterranean-style sanctuary and swimming pool, with sincerely ill sights of Burj Khalifa.

For the blue-chip visionary open to a as soon as-in-a-era conservation acquire, a uncommon opportunity to very own a 41-acre private reserve in the coronary heart of the Karoo, Eastern Cape, South Africa is now a reality at $29 million. If ever there was a listing merely built for the likes of Leo DiCaprio, this is it. iSanti Major-5 Non-public Reserve anchors this enigmatic ecosystem, residence to some of the world’s most endangered wildlife, which include the world’s greatest residing Black Rhino.

The rugged Karoo landscape evokes huge horizons, vistas, and plains penetrated by deep endless skies. As fintech titans feel keen to incorporate the feather of hotelier to their cap, this detail could seal the deal—the invest in selling price involves The Magic Hills Personal Selection of three designer lodges, and one particular luxe camp, developed to host stylish and soulful safari encounters.

A private activity reserve and safari lodge in South Africa mentioned for $36 million
(Lew Geffen Sotheby’s Intercontinental Realty)

The Reserve’s conservation can be supported by a variety of useful tax incentives. And there is also likely to grow, to the stage of adjoining the Addo Elephant Park, creating the premier private reserve in South Africa.

“iSanti really offers not one particular, but two sides to the business coin— that of the hotelier or hospitality operator, and that of conservationist,” observes Kim Cooper of Lew Geffen Sotheby’s Worldwide Realty. “Globally we are acquiring that peace is starting to be a commodity, and thoroughly clean, new air a privilege. For individuals wishing to delight in the benefits of their accomplishment, absolutely nothing compares with the vastness and vistas of iSanti.”

In the market for a place to secure the two your Spanish Arabians and beloved vintage weekend whip? The Retreat at Moonstone Seaside in central California is a gated 78-acre coastal sanctuary full with dense forests and sprawling acres of equestrian open up space. At the middle of this amazing multi-structure residence is a 12,000 sq. toes masterpiece home, which occurs to be one-Harry-Kinds-songon-the-AirPods absent from Cambria’s storybook seashores.

Car or truck collectors acquire note—showroom storage for up to 50 automobiles and direct frontage on Pacific Coast Highway’s most extraordinary stretch in the direction of Significant Sur and Pebble Seaside puts this one more than the top. Get the leap on Jay-Z before he decides his Maybach Exelero needs new digs and scoops up this smokeshow.

Listed at $40 million, the compound also contains a helipad, guesthouse, staff quarters, and two versatile function halls, for a full of 12 bedrooms, 12 baths, and 33,270 sq. toes throughout all constructions. And did we mention the six-acre Pinot Noir winery?

A $29 million cliffside unfold in the Seychelles shown by Tobias Schulze of Cologne Sotheby’s Global Realty
(Cologne Sotheby’s Worldwide Realty)

A valentine to French Riviera stylish, meet up with the waterfront villa boasting an enviable spot in close proximity to the storied Saint-Jean-Cap-Ferrat lighthouse. Designed by the acclaimed JA Architecture, this contemporary gem is impeccably styled to showcase cinematic sights from each and every vantage level.

For those people who privilege privacy about showboat flash, the safe footprint is the property’s genuine distinction, perfectly truly worth the $33 million rate tag. This is the sort of next house where you conclusion up investing all your time, endlessly drawn to its southwest exposure, endowing soaring residing spaces with endorphin-lifting light-weight.

Spread about four levels—all available by elevator—it delivers a huge learn suite and four additional en-suite bedrooms. The backyard garden brims with a strong Mediterranean plant palette, flaunting non-public entry to the seaside route, a stone’s toss from the venerable Club Dauphin of theGrand-Lodge du Cap-Ferrat, a famed 4 Seasons property.

Rising on a lush, tropical horizon like one thing designed with the cunningly-procured proceeds of a Thomas Crown Affair-fashion heist, here’s your possibility to sip chilled Sancerre in one particular of the Seychelles’ most significant villas. This impressive campus sits on almost 10 acres of freehold land, priced at $28 million. Indian ocean views-meets-Bali-inspired architecture, combining higher design with the features of an extremely-luxury vacation resort.

The villa is divided into four parts that include exceptional household blocks providing 23 ensuite bedrooms, a spa, health and fitness center, qualified kitchen, cafe, rooftop bar, swimming swimming pools, and an supplemental 4 bedrooms for employees. An architectural gem framed by an oceanscape starring Seychelles’ signature granite stones, awaiting adventures in haute hospitality.

An astounding up to date estate on 20 acres in Ibiza outlined by Barbara Caprara of Ibiza Sotheby’s Global Realty (Ibiza Sotheby’s Global Realty)

Primed for christening with copious magnums of Perrier-Joüet, an beautiful new estate composed of 3 smooth residences is prepared to rule the west coast of Ibiza. Designed in 2021, the campus presents 26,909 sq. toes of living house across a amazing 20-acre plot tucked into the hills of Sant Agustin.

Every single of the residences functions impossibly interesting designer finishes meticulously handpicked and mounted with precision—think Gagosian Gallery goes to Ibiza. Primary farming terraces have been restored with robust fruit orchards. Every single house has its individual kitchen, dwelling and dining rooms, with scrumptious sights of the countryside or glowing sea. This plum residence bears all the hallmarks of a passion job, where by builders and designers plainly brought their innovative A-match (cost on ask for).

And for the first time, the Pinnacle Penthouse at Woolworth Tower Residences is up for acquisition, with the possible for an accredited blend of the 49th floor—think 12,131 inside square toes encompassing the full crown of this legendary Manhattan landmark. Designed by illustrious French architect Thierry W. Despont, peak highlights incorporate 125 home windows, 24-foot ceilings, and a private elevator to services the a few ensuite bedrooms.

An awesome modern estate on 20 acres in Ibiza mentioned by Barbara Caprara of Ibiza Sotheby’s Global Realty (Ibiza Sotheby’s International Realty)

At an inquiring price of $59 million, the penthouse shall be shipped in designer-prepared white-box situation. Suffice to say, this international tapestry of prized houses at the moment on the market leaves tiny to be wanted. Even though George Soros may have been information banking rural farmland in bulk, sophomore billionaires on the scene might be in search of a bit far more sizzle between the spreadsheets.


Tags: Dubai Luxury Serious Estate journal write-up New York City information authentic estate Vacation

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Canada’s luxury real estate enters buyer’s market as prices come down

Canada’s luxury real estate enters buyer’s market as prices come down

Prices easing as sellers adjust to new realities of market, Sotheby’s says

Luxury real estate prices are expected to be lower in 2023.
Luxury real estate prices are expected to be lower in 2023. Photo by Tyler Anderson/National Post

Canada’s luxury real estate market cooled significantly last year, setting 2023 up for a buyer’s market across much of the country as prices come down.

Both buyers and sellers retreated from the luxury housing market in Toronto, Vancouver and Montreal in 2022, creating new benchmarks for prices and sales, Sotheby’s International Realty Canada said in a report out this morning. Calgary was the one outlier, buoyed by strong migration and a healthy economy.

But for the rest of Canada, high inflation, rising interest rates and fears of a recession dampened market activity as sellers held onto their properties in hope of better conditions, and buyers sat on the sidelines waiting for prices to come down.

The Greater Toronto Area’s luxury market statistics tell the tale of 2022. Last year, sales of all homes over $4 million declined 24 per cent from 2021, and sales of homes above $10 million — known as ultra-luxury properties — fell 29 per cent. Sales of residences costing $1 million or more also declined by 28 per cent.

That was evidence of buyers’ willingness to sit back and wait for better prices and more properties to hit the market, even as demand for homes remained strong, Sotheby’s said.

But buyers won’t be deterred for much longer. As inflation slowed at the end of the year, the appetite for homes became harder to ignore — just in time for the market to shift in favour of buyers. That means prices will ease because sellers have adjusted to the new realities of the market, Sotheby’s said.

“By the end of the year, luxury housing segments in several major metropolitan areas were on the brink of buyers’ market conditions, while others had clearly shifted into this territory,” Don Kottick, chief executive of Sotheby’s said in a news release. “The market is now on the verge of another important adjustment, this time in terms of pricing.”

Sotheby’s expects prices to be lower than the heady days of 2021 this year, even as listings grow. That dynamic will likely draw more buyers back into the market, eager to snap up properties at valuations they’ve long been waiting for.

“Prices will shift to meet current realities,” Kottick said. “This will start to unlock long-awaited opportunities for buyers and upsizers to purchase homes that meet their lifestyle needs as they acclimatize to the market.”

Activity in Vancouver’s luxury real estate market is expected to bounce back as a result, Sotheby’s said. As interest rates pushed mortgage rates higher last year, Vancouver’s buying frenzy cooled, and the region experienced major declines in sales. Homes priced above $4 million and $10 million languished on the market as buyers pulled back, and sales volumes were 30 per cent and 46 per cent lower, respectively, than they were in 2021. Sales of homes above $1 million fell 29 per cent. Prices also eased, and are expected to continue to moderate in the coming months.

In Montreal, conditions were more balanced last year. Bidding wars, which were the norm in 2021, became less common and homes took longer to sell. Sales of residences priced above $1 million declined 18 per cent, but houses above $4 million eked out a two per cent gain in sales. Sotheby’s expects prices to cool some more in 2023, but not so much that the market tips in favour of buyers. Sellers will also benefit from a balanced market, the report said.

Meanwhile, Calgary’s market showed continued signs of strength as people flocked to Alberta from other parts of the country. Sales of homes priced higher than $1 million rose by 16 per cent compared to 2021, and sales of homes above $4 million grew by 50 per cent. That put the region in sellers’ market territory, and Sotheby’s expects the market to keep gaining strength in the first part of this year. But in good news for buyers, conditions should become more balanced as new listings come online.

Still, inventory will remain a problem in some big cities, including Vancouver and Toronto, as demand outstrips supply, Kottick said. And as more immigrants flow into the country, demand will only increase. That means prices aren’t likely to get as low as some buyers may have hoped.

“Although housing prices are expected to adjust downward to realistic market norms in several major metropolitan areas, pent-up demand for housing mobility as well as anticipated population gains from immigration will continue to support housing values in the long term,” the report said.

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Canada’s main measure of inflation dropped to its slowest rate in almost a year, a positive change, but one that will complicate the Bank of Canada’s decision on what to do with interest rates, writes the Financial Post’s Kevin Carmichael.

The consumer price index increased 6.3 per cent from December 2021, down from 6.8 per cent the previous month and the smallest year-over-year increase since the index rose 5.7 per cent in February 2022, Statistics Canada reported on Jan. 17. The drop in the headline number was mostly the result of lower gas prices. Excluding food and energy, inflation rose 5.3 per cent from December 2021, down only marginally from 5.4 per cent in November.

What does that mean for interest rates? Read the full story to find out more.

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  • NDP Leader Jagmeet Singh will deliver a keynote address to his caucus during their three-day retreat in Ottawa
  • The standing committee on government operations and estimates meets to discuss a request to undertake a study of contracts awarded to McKinsey & Company
  • Adam van Koeverden, parliamentary secretary to the minister of health and to the minister of sport, on behalf of Francois-Philippe Champagne, minister of innovation, science and industry, will be announcing the recipients of support from INOVAIT’s Focus Fund
  • The Economic Club of Canada hosts an event called “Challenges and Opportunities Facing the Future of Canada’s Natural Resources”
  • Francis Drouin, parliamentary secretary to federal Agriculture Minister Marie-Claude Bibeau, tours the Toronto laboratory of Genecis Bioindustries. The company, one of six finalists in the Novel Technologies Stream for the Food Waste Reduction Challenge, is converting food waste into compostable and biodegradable plastics
  • Melanie Joly, Minister of Foreign Affairs, and James Cleverly, Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom will hold a press conference during his visit to Canada
  • Dan Vandal, Minister for PrairiesCan, will outline federal support to ensure the continued growth and competitiveness of technology and technology-enabled Calgary businesses as they expand and create new jobs for Albertans
  • Agriculture Minister Marie-Claude Bibeau travels to the United Kingdom to meet counterparts and deliver remarks at the International Grains Council Grains Forum and then to Germany to attend the Berlin Agriculture Ministers’ Conference 2023
  • Today’s data: Canadian industrial product and raw materials price indices; U.S. retail sales, producer price index, industrial production and capacity utilization, NAHB housing index, business inventories
  • Earnings: Kinder Morgan Inc., Charles Schwab, Alcoa Corp.

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The stock market has been rocky, but that doesn’t mean you should stop investing — you might just want to branch out. This is where alternative investments come in. Alternative investments — assets other than stocks — can help hedge against inflation, protect your wealth from downside risk and potentially enhance portfolio returns. Thanks to one disruptive startup, an alternative investment has finally been made accessible to everyday investors — fine art. Our content partner MoneyWise explains how to invest in art.

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Today’s Posthaste was written by Victoria Wells (@vwells80), with additional reporting from Financial Post staff, The Canadian Press, Thomson Reuters and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com, or hit reply to send us a note.

Listen to Down to Business for in-depth discussions and insights into the latest in Canadian business, available wherever you get your podcasts. Check out the latest episode below:

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Canadian luxury real estate entering ‘buyer’s market’: Report

Canadian luxury real estate entering ‘buyer’s market’: Report

Canadian luxurious real estate might be shifting into buyer’s market place situations this 12 months, according to a new report from Sotheby’s International Realty Canada, as prices readjust from pandemic-similar upheaval.

The report issued Wednesday reported potential buyers and sellers retreated from the luxury market in 2022 as the housing industry responded to troubles like fascination level hikes, large inflation and regulatory troubles, location the stage for selling prices to neat this calendar year amid continued need for housing.

Don Kottick, president and CEO of Sotheby’s International Realty Canada, reported luxurious housing segments in some Canadian metropolitan regions had been both approaching or already in buyer’s market circumstances by the stop of 2022, and he predicted an additional “important adjustment” on pricing on the horizon in the coming months.

“It has taken many months for property sellers to realize the effects of the shifting current market on the market values of their properties. As new residence listings come on to the industry in 2023, their pricing will change to meet up with existing realities,” Kottick claimed in a prepared statement.

“This will start off to unlock lengthy-awaited prospects for consumers and upsizers to obtain properties that meet their lifestyle requires as they acclimatize to the sector.”

Sotheby’s report found luxury sales fell yr-more than-calendar year in big Canadian towns. In the Bigger Toronto Area, household genuine estate gross sales over $4 million fell nearly a quarter from 2021 to 2022, and income above $10 million fell 29 for every cent. 

Vancouver also observed a sharp decline in superior-finish true estate sales, notably in the very first quarter of the 12 months, with residential income in excess of $4 million falling by 30 for every cent by the finish of 2022. Residential profits more than $10 million fell 46 for each cent from 2021 stages.

The report stated Montreal’s luxury serious estate industry “tempered to far more balanced conditions” more than the course of final calendar year, with household product sales above $4 million close to 2021 amounts and an 18 per cent yearly decrease in product sales action for residences in excess of $1 million.

Calgary was an outlier that outperformed other metropolitan places and observed sales of properties more than $1 million increase 16 for every cent from 2021 to 2022. Sales around $4 million mature 50 for each cent, the report explained, with 6 qualities marketed in that rate variety. The report said the city’s solid economy “ignited client confidence” even though interprovincial migration contributed to escalating desire for housing.

Kottick famous that housing deficits will continue to challenge housing marketplaces in significant cities in 2023, and while rates are anticipated to go down, pent-up desire and immigration populace gains “will continue to assist housing values in the prolonged phrase.”

New policies aimed at restricting foreign participation in the housing sector “will have a negligible influence on affordability” and have confuse d potential new Canadians, he extra.