Vancouver real estate: luxury market continues to boom

The real estate market in Vancouver is showing no sign of a slow down, with demand in the one million dollar and above bracket considered luxury homes by the industry continuing to soar.

According to a new report into top tier sales in the city by Sotheby's International Reality, sales of homes over $1 million in the first six months of 2014 grew by 34 per cent over the same period last year.

Sales in the $1 million to $2 million range were up 32 per cent, the $2 million to $4 million rose 35 per cent, while the $4 million-plus market grew a whopping 49 per cent. Single-family homes in general saw the greatest bump in sales, with rises of 35 per cent, 39 per cent and 51 per cent across the three price bands respectively.

The rising demand for homes pushed sales significantly over asking price, with 30 per cent of detached single family homes and 19 per cent of attached homes in the $1 million to $2 million range bought for over list price. Homes were also on the market fewer days before they sold.

Concerns that the elimination of the Immigrant Investor Program that offered visas to business people whose net worth totalled at least $1.6 million and who were willing to lend the Canadian government $800,000 interest-free over the course of five years would adversely affect the market, appear to have come to naught.

According to the report, the luxury market has seen no impact from the change, and international demand is expected to remain strong.