The first half of 2025 has been marked by economic uncertainty and shifting buyer sentiment across Canada’s luxury real estate market. According to the newly released Top-Tier Real Estate: 2025 Mid-Year State of Luxury Report by Sotheby’s International Realty Canada, high interest rates, trade tensions, and cautious consumer confidence have cooled sales in some major markets—while others are showing unexpected resilience.

Toronto saw a decline in overall $1M+ and $4M+ transactions, yet ultra-luxury sales over $10M surged by 200%, driven by demand in exclusive neighbourhoods. Montreal and Calgary, with more accessible luxury price points, led the way in sales growth. Vancouver, on the other hand, saw the sharpest declines among major cities.

Despite these fluctuations, real estate continues to serve as a long-term store of value, particularly in top-tier and ultra-luxury segments where buyer confidence remains strong.