Canada's luxury real estate market is moving past Toronto and Vancouver. Here's why the South Island has been ahead of this shift the whole time.
For a long time, "luxury real estate in Canada" basically meant two postal codes: Toronto and Vancouver. If you wanted a serious estate property or a showpiece waterfront home, that's where the money — and the headlines — went.
That's no longer the whole story.
The Big Cities Aren't the Whole Story Anymore
RE/MAX Canada's newly released 2026 Spotlight on Luxury Report shows something pretty striking happening underneath the surface of the national market. While Toronto and Vancouver's high-end segments are cooling — luxury sales activity down close to 17% and 20% year-over-year, respectively — smaller and mid-sized markets are surging. Edmonton led the country with luxury sales up nearly 50%. Saskatoon, Ottawa, and Calgary all posted strong double-digit gains too.
The report's take is pretty simple: high-net-worth buyers in the traditional hubs are being more cautious right now, while buyers in regions with strong local economies and room to grow are moving with confidence.
What "Luxury" Actually Means Now
Here's the part that really caught our eye. The definition of luxury itself is shifting. It's less about sheer square footage and more about how a property actually makes you live.
Today's high-end buyers are chasing:
Waterfront and estate settings — privacy and a real connection to nature
Walkability — high-end convenience inside a tight-knit community, not a sprawling subdivision
Intentional design — homes that genuinely support remote work, wellness, and day-to-day life, not just a great photo for the listing
Sound like anywhere you know?
That's Kind of the South Island's Whole Thing
We'll be honest — this "new" definition of luxury isn't new to us at all. It's just describing what the South Island has quietly offered for decades.
Oak Bay's character homes, walkable streets, and ocean views. North Saanich's deep-water moorage properties tucked into the trees. Acreages in the Cowichan Valley with room to breathe and a view of the vineyards instead of the neighbour's fence. Sooke's wild, unfiltered coastline. Even Shawnigan Lake, where my own family's spent more weekends on the water than I can count — that's six generations of calling this Island home, and the appeal hasn't changed: this place was built for the kind of living people are now paying a premium for everywhere else.
What's Actually Happening Here Right Now
The South Island isn't immune to broader market shifts, but the local picture has some genuinely good news for buyers exploring the upper end of the market this spring:
Oak Bay continues to see limited inventory, which is keeping pricing well-supported — well-presented heritage homes are still attracting multiple offers.
North Saanich has seen a meaningful uptick in new waterfront listings this spring, giving buyers looking for deep-water moorage more genuine choice than they've had in the last few years.
Across Greater Victoria more broadly, inventory is sitting at its highest level in over a decade, which means more time, more selection, and more room to negotiate — even at higher price points.
The Takeaway for South Island Buyers and Sellers
The national story is one of decentralization — luxury moving toward places with lifestyle, livability, and value. The South Island has been living that story all along. Whether you're dreaming about a waterfront property in North Saanich, an estate acreage in the Cowichan Valley, or simply curious what your Oak Bay character home might be worth in today's market, this is a genuinely interesting moment to take a closer look.
Curious what this shift looks like for your specific neighbourhood? Reach out anytime — happy to talk it through, no pressure.