As we progress into 2025, the luxury real estate markets in both Canada and the U.S. are experiencing a dynamic landscape shaped by economic trends, demographic shifts, and changing buyer preferences.

While both countries entered the year with optimism, supported by declining interest rates and strong buyer demand, emerging economic concerns have led some investors to adopt a more cautious approach. However, inventory levels are rising in both markets, fuelling optimism despite ongoing uncertainties.

In this month’s report we review:

The report is a guide to the luxury real estate market in North American. It provides an overall analysis with trends and highlights comparative data on the top-residential markets throughout Canada and the United States. 

∙This month’s report displays the market statistics for North America month over month as 
well as the 13-month trend. 

∙The luxury real estate markets in Canada and the U.S. are evolving amid shifting economic conditions and changing buyer preferences. 

∙Declining interest rates initially sparked optimism, but economic uncertainty has made some investors cautious. 

∙While sales are increasing, inventory is expanding at a faster pace, making pricing strategy critical for sellers. 

∙Despite the many similarities between Canada and the U.S. luxury real estate market there are also several key differences, these are reviewed in this month’s report. 

Similar Trends in Canada & the U.S. 

• Interest Rates & Buyer Caution: Lower interest rates drive activity, but economic uncertainties influence decision-making.
• Ultra-Luxury Market Resilience: High-net-worth buyers focus on premium properties and are less impacted by financing conditions.
• Generational Shifts & Inventory Growth: Baby Boomers are selling, while Millennials and Gen Z buyers prioritize sustainability and smart home technology.
• Detached Homes Remain the Top Choice: Despite rising condo demand, detached homes dominate luxury market preferences.
• Strategic Pricing is Essential: With more inventory available, competitive pricing is key to attracting buyers.

Key Differences: Canada vs. U.S. Markets 

• Economic & Tax Policies: Canada enforces stricter taxation and foreign buyer rules, while the U.S. offers more investment flexibility and tax incentives.
• Housing Supply & Market Dynamics: Canada’s luxury market has limited supply, keeping prices stable even during downturns. The U.S. offers a diverse market with greater pricing and inventory fluctuations.
• Demographic Influence: Canada’s market is more family-driven and attracts high-net-worth immigrants. The U.S. has a mix of lifestyle and investment-focused buyers with fewer foreign ownership restrictions.

Global Luxury Real Estate Trends are also reviewed with key insights from the editor of Knight Frank’s The Wealth Report. 

• AI, geopolitical shifts, and financial market fluctuations continue to influence the global real estate landscape. 
• Despite challenges, global GDP growth remains strong, supporting long-term real estate investment. 

For homeowners looking to sell or buy their luxury home in today’s market we recommend working with a realtor who can provide you with critical knowledge about your local market, maintain a high level of security during the transaction and knows how to leverage technology to provide maximum exposure and assistance.   

It is my responsibility as your REALTOR to ensure that when others around you are lowering their expectations, that this becomes the time for us to switch gears and discover how to leverage the market effectively to achieve your goals.