Canada’s luxury real estate sector entered a more measured phase in 2025, with buyer behaviour varying widely across regions. While Toronto and Vancouver experienced softer sales as high prices and expanded inventory encouraged a cautious approach, markets like Ottawa, Montréal, and Halifax saw notable growth in luxury transactions. Across the country, average prices remained largely stable, highlighting the resilience of the high-end housing market.
Regional Divergence Drives Market Dynamics
Luxury buyers are increasingly deliberate in their purchasing decisions, prioritizing quality, location, and long-term livability over speculative moves. Engel & Völkers reports that this shift toward careful selection helped maintain price stability, even as overall sales activity diverged by city. The trend underscores the importance of strong advisory expertise for facilitating successful transactions, particularly in competitive or value-sensitive segments.
Market Highlights by City
Ottawa: Luxury detached sales between $1–1.99M rose by 33%, with average prices up 2%.
Montréal: Detached sales in the $1–3.99M range increased by 32%, while average prices remained steady at $1.49M.
Halifax: Homes priced $1–1.99M saw a 23% increase in transactions, with a 3% rise in average prices.
Toronto: Luxury sales in the $1–1.99M segment fell 15%, though average prices held at $1.5M, and listings dropped 44%.
Vancouver: Sales in the $1–1.99M range declined 9%, with prices stable and new listings up 18%.
These figures illustrate a national luxury market that is increasingly influenced by local fundamentals such as employment stability, housing supply, and lifestyle appeal, rather than broad nationwide trends.
What This Means for 2026
Looking forward, Canada’s luxury housing market is expected to remain selective and segmented. Cities offering strong value, appealing lifestyle features, and stable local economies are likely to outperform, while sellers who maintain realistic pricing and quality offerings will see continued success. As buyers grow more discerning, the role of advisors with deep local knowledge and global connections becomes even more critical for navigating the high-end market.
Key Takeaways
Price Stability: Despite volume fluctuations, average luxury home prices stayed steady nationwide.
Top Performing Cities: Ottawa, Montréal, and Halifax saw growth in luxury sales, whereas Toronto and Vancouver experienced slower activity.
Brokerage Performance: Experienced advisors and flagship brokerages benefited from buyers’ more selective behaviour, supporting growth even in markets with softer overall volumes.
This summary is adapted from Engel & Völkers’ 2025 Year-End Canadian Luxury Real Estate Market Report.


















































