Alex_533 via Getty Images Luxury homes overlooking the water in West Vancouver, B.C. Sales of luxury properties declined sharply in three of Canada's biggest cities last year, realtor Sotheby's says.

TORONTO — Sales of luxury properties declined sharply in three of Canada's biggest cities last year as homebuyers retreated amid tightened mortgage guidelines and higher interest rates.

A report released today found that Vancouver, Toronto and Calgary saw large drops in high-end real estate sales in 2018 as the markets dealt with a number of headwinds including tighter supply, higher foreign buyer taxes and strained economic conditions due to the falling price of oil.

Sotheby's International Realty Canada says the number of homes that were sold last year for $1 million and higher, dropped 26 per cent in Vancouver while home sales priced $4 million and more fell 49 per cent year-over-year.

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