GTA luxury market home set for surge in spring

Homebuying activity in most luxury markets across the country is slowly shifting into high gear, as buyers reap the benefits of softer housing values, according to a new report from ReMax Canada.

The company’s 2024 Spotlight on Luxury Report examined luxury home-buying activity in 10 markets across the country in the first two months of the year and found that, despite a disconnect between buyers looking for deals and sellers’ price expectations, almost all regions reported a strong start to the year. Ninety per cent of markets experienced an increase in high-end sales, with more than two-thirds recording double-digit growth. Toronto and London reported increases of 14.4 per cent and 9.4 per cent respectively.

“While figures remain off peak levels reported during COVID, the upswing in luxury sales signals a return to overall health in the country’s major centres,” says ReMax Canada President Christopher Alexander. “The ripple effect is already underway, with stronger homebuying activity at lower price points pushing sales into the upper end. In some cities where inventory levels are particularly challenging at the lower end, multiple offers have returned with a vengeance. While that isn’t the case at the top end, pent-up demand does exist, and activity is gaining momentum.”

Condominiums have been a popular option this year, despite single-detached homes comprising the lion’s share of luxury sales. Condo activity was strongest in Metro Vancouver, where sales climbed close to 70 per cent in the first two months of the year (27 versus 16). Solid condo activity at the high-end price points was also reported in London, fuelled by empty nesters and retirees, and in Ottawa and Montreal.

GREATER TORONTO AREA

The GTA luxury market has sprung back to life in the first two months of the year, with home sales above the $5-million price point leading the way. Thirty-two freehold and condominium properties changed hands between Jan. 1 and Feb. 29, up 77 per cent from the 18 sales reported during the same period in 2023. Of the 32 properties sold for more than $5 million to date, 17 sales occurred in the 416, while 15 were in the 905.

Interest rates remain the greatest roadblock to homeownership at present, ReMax says. It’s anticipated that once rates start to fall, Toronto’s housing market will be exceptionally robust, with pent-up demand the driving force.