Okay, so you've all sent us this REMAX Canada report titled Spotlight on Luxury
Real Estate in Canada 2025.
And we're going to take a deep dive into it right now and pull out what seemed
like the most important takeaways about the Canadian luxury property market,
at least from what this document tells us.
Right. You've shared this with us, and it looks like it's a pretty substantial
report coming from a pretty big player in the real estate world.
I mean, just looking at the report, REMAX Canada is part of this huge global network.
I mean, it's a subsidiary of REMAX Holdings, which boasts, let me see here,
yeah, over 140,000 agents and nearly 9,000 offices in over 110 countries and
territories. I mean, that's huge.
Yeah, no kidding. So I guess we can safely say they've been around the block
a few times, right? I mean, they were founded all the way back in 1973.
That's right. Yeah, Dave and Gail Linegar.
Okay, so yeah, 1973, that's over five decades in the business.
They must have seen a thing or two when it comes to market trends,
ups and downs, the whole shebang.
And one thing that really caught my eye is their claim that,
quoting here, nobody in the world sells more real estate than REMAX as measured
by residential transaction signs.
That's a pretty bold statement, don't you think? It is. But when you think about
it, that kind of volume, it's got to give them a unique perspective on market dynamics.
I mean, the sheer number of transactions they handle, it's like a massive pool of data.
And that includes the luxury sector, of course. Right, right.
So they're not just talking the talk, they're walking the walk, so to speak.
Now, before we get too deep into this, there's something important we should flag right off the bat.
And that's this idea of forward-looking statements they mentioned throughout the report.
What exactly does that mean in this context? Good point. Yeah,
you got to be careful with these things.
Essentially, these forward-looking statements are like predictions or projections
about what might happen in the future, in this case, specifically about the
housing market, you know, and even REMAX's own performance and growth.
OK, so it's not like a crystal ball, more like an educated guess based on what
they know right now. Exactly.
And the report actually makes this very clear. You know, they're saying these
statements aren't guarantees of anything.
They are based on the information they have currently, what their management
believes, you know, about future events.
Like they specifically mentioned things like global events having a continuing
impact and changes in interest rates, the overall health of the economy, things like that.
Right. So all these external factors that could throw a wrench in the works, so to speak. Exactly.
And they really emphasize the fact that these statements involve risks and uncertainties
that could lead to, well, different outcomes than what they're predicting.
You got to keep this in mind when we're discussing these potential trends they
highlight. Absolutely.
So we're not taking these predictions as gospel, more like possibilities based on their expertise.
Now, the title of this report is Spotlight on Luxury Real Estate in Canada 2025.
But it seems like it's not just one big report. It's more like a collection
of reports focused on different cities, right?
That's right. Yeah. The main page that you shared is like a hub,
kind of. It links to a bunch of more localized spotlight on luxury reports.
And according to this page, they have individual reports available for,
let's see, Vancouver, Calgary, Saskatoon, Moncton, Montreal,
Edmonton, Hamilton, Burlington, Winnipeg, and Greater Toronto.
Wow. So they're covering a lot of ground there. That's a pretty comprehensive
overview of the Canadian luxury market, wouldn't you say?
Yeah, for sure. It's not just a single, like, broad brushstroke about the Canadian
luxury market. They've gone and created distinct reports for different regions.
So it's really quite thorough.
That's great. But just to be clear, our focus right now is on what this main
landing page is telling us about these individual city reports, right?
We're not going to get into the specifics of Vancouver versus Montreal, at least not yet.
Exactly. Yeah. So for this particular deep dive, we're sticking to the main page.
We're going to be looking for like overarching themes or summaries that REMAX
Canada is presenting about all these different luxury market reports.
Got it. So if we see any consistent patterns, any insights that they're saying
apply across multiple cities, you know, that's what we'll be focusing on.
Okay, so think of this as like a high-level overview, you know,
getting the lay of the land before we maybe zoom in on individual cities later
on. That's something our listeners are interested in.
So we've talked about REMAX Canada, their expertise, these forward-looking statements,
and the fact that there are these city-specific reports that...
Now, let's get down to brass tacks. What's the main takeaway here?
What are they saying about luxury real estate in Canada as we head towards 2025?
Okay. So one thing that jumps out right away, even though the main page mostly
just links to the individual reports, is that they highlight a couple of recurring
themes that seem to be popping up across a bunch of these markets.
And one of the big ones is this continued strong demand for luxury properties
in suburban and recreational areas.
Yeah. Yeah, it's like that shift we saw during the pandemic,
you know, with people wanting more space and access to nature. Right.
It looks like it might be extending into 2025, even in the luxury segment.
So even at the higher end of the market, people are still prioritizing lifestyle
and space outside of the downtown core.
That's fascinating. Yeah. Do they give any insights into what's driving this trend?
Yeah, they touch on a few potential factors. Like they point to the fact that
a lot of high income earners now have more flexibility in their work arrangements,
you know, remote work and all that.
So they can afford to live further away from those traditional urban centers.
Makes sense. And they also suggest that these types of properties,
you know, out in the suburbs or recreational areas, they can be seen as more
resilient investments over the long term.
Like they offer both lifestyle benefits and potential appreciation.
OK, so it's not just about wanting a bigger backyard. There's a financial angle to it as well.
Interesting. Now, apart from this
suburban demand, what other overarching insights are they highlighting?
Anything about pricing or inventory levels?
Yeah. So another consistent theme they bring up is the fact that inventory in
the luxury segment is still relatively low in a lot of these cities.
They say this limited supply combined with the strong demand we were just talking
about, it's continuing to put upward pressure on prices, especially in certain key markets.
Right. Like they specifically mentioned Vancouver and Toronto as prime examples
of where this dynamic is really strong.
So even in the luxury market, which you'd think would be less affected by supply
issues, we're still seeing this imbalance between supply and demand in major
centers like Vancouver and Toronto.
Do they give any indication of whether this inventory situation is going to
change much in the next couple of years?
Well, the main page doesn't get into specific forecasts for inventory levels,
you know, city by city, but they kind of imply that they don't expect a sudden
surge in luxury listings anytime soon.
They talk about things like the cost and availability of land development and
the pace of new construction in the luxury segment.
They suggest these factors are probably going to keep inventory relatively tight
in those high demand areas. So it sounds like it's going to be a seller's market
for a while yet, at least in those particular cities.
So just to recap what we've gathered from this main page, we've got this trend
of strong demand for luxury properties in suburban and recreational areas.
We've got low inventory levels in key markets.
And both of these factors are pushing prices upwards.
Anything else we should highlight before we wrap up this initial overview?
One more thing, yeah. They do send a note of caution about the potential impact
of rising interest rates.
Like, they acknowledge that demand for luxury is still robust.
Right. But they suggest that as borrowing costs go up, it could lead to a slowdown
in the pace of price growth, especially in markets that are really sensitive to financing.
So basically, while things are looking good right now, there are some potential
headwinds on the horizon.
Makes sense. So for our listeners out there, we've taken a look at this RE-MAX
Canada report, Spotlight on Luxury Real Estate in Canada 2025.
We talked about RE-MAX Canada's extensive experience in the market,
the fact that this report is based on forward-looking statements,
which are more like educated predictions than guarantees.
Right. And we've also seen that this Spotlight on Luxury actually includes nine
individual city reports, each offering a more in-depth look at specific markets. Exactly.
And from this initial overview, we've identified a few key trends that seem
to be playing out across multiple Canadian cities.
Strong demand for luxury in suburban and recreational areas,
low inventory in some key markets, and that ongoing concern about rising interest rates.
Now, for you, the listener, it might be really interesting to see which of these
cities, Vancouver, Calgary, Saskatoon, Mumpton, Montreal, Edmonton,
Hamilton, Burlington, Winnipeg, or Greater Toronto.
Which of these markets aligns with your own interests or any real estate decisions
you might be considering. Absolutely.
Because diving into those specific reports will probably give you a much more
detailed understanding of what's happening in those regions,
you know, the nuances of each market and all that. Exactly.
And one final thought to leave you with, RE-MAX. They're a global player, right?
They have a ton of data on real estate markets all over the world.
So these trends that they're highlighting in Canada, this shift towards suburban
luxury and these inventory challenges, it makes you wonder if we're seeing similar
things happening in other countries as well. It does.
Yeah. Like, are these trends unique to Canada or are they part of a larger global
shift in the luxury real estate market? Exactly.
And how are global economic factors like those rising interest rates?
How are they affecting luxury markets beyond Canada's borders?
Lots to think about. Yeah, lots to think about.