With a busy summer behind us, it looks like the Greater Toronto Area’s luxury home market is poised for a strong fall, according to Sotheby’s International Realty Canada’s latest Top-Tier Real Estate report.
With consumer confidence high and healthy economic fundamentals, the GTA is poised to lead the country’s top-tier real estate market, and prices are expected to keep going up. Sotheby’s says the demand for “ultra-luxury” properties on the outskirts of the City of Toronto is on the rise.
“Toronto has made bold strides over the summer months to take its place at the forefront of Canada’s top-tier real estate market this fall, as healthy job gains and fully restored consumer confidence spur steady gains,” says Don Kottick, President and CEO of Sotheby’s International Realty Canada. “After prolonged uncertainty, Vancouver is now poised to regain traction as pent-up consumer demand gradually releases into top-tier resale activity.”
In the first half of 2019, $1 million+ home sales in the GTA increased 12% year-over-year. In July and August, top-tier sales went up 29% with 2,966 units sold. Home sales from $1-2 million increased 33% with 2,619 sold, and $2-4 million sales jumped 12% with 308 sold. With ultra-luxury home transactions shifting off the MLS, home sales of $4 million+ fell 17% with just 39 recorded through the public system.
In Toronto, top-tier sales in the summer increased 25% year-over-year with 1,123 units sold. There were 922 sales between $1 million and $ 2 million, which is an increase of 31%. The $2-4 million transactions went up 9% with 174 units sold, and $4 million+ sales fell 23% with just 27 sales.
The busy summer also set up the condo market for success in the fall. In July and August, top-tier condo sales went up 13% in the GTA (225 sold) and 16% in Toronto (197 sold). More than 90% of the top-tier condo sales were between $1 million and $2 million. Condo sales in this price range increased 19% in the GTA with 207 sold and 19% in Toronto with 179 sold.
One thing Sotheby’s points out that you should keep in mind is that Canada’s top-tier real estate market may struggle with a degree of uncertainty this fall as we head towards the federal election. During pivotal times like this, it’s common for would-be buyers to take a step back, just to see how the economy and housing market are impacted by the election.
That said, September is already off to a good start with 577 top-tier home sales in the GTA in the first 15 days of the month. That’s 53% higher than the same period a year ago! And $1 million+ condo sales increased a whopping 74% in the first couple weeks of September with 47 units sold.
We’re eager to see how the top-tier real estate market fares for the rest of 2019!