Luxury home sales up 38% in GTA
January 07, 2015
Luxury listings in the GTA were being snapped up faster that you could say "for sale," according to Sotheby's International Realty Canada's latest Top-Tier Real Estate Report. Sales of homes priced over $1 million jumped 38 per cent in 2014 year over year. That upward trend is expected to continue well into 2015 with historically low mortgage lending rates, a solid Canadian economy and an ongoing flow of immigration, migration and foreign investment into Canada's major markets.
In 2014, a total of 7,527 homes priced over $1 million were sold across the GTA. Homes between $1-2 million saw a 39-per-cent increase, while those sold in the $2-4 million range increased by 38 per cent. Sales in the $4 million category were up by 10 per cent.
The GTA beat out Canada's priciest market – Vancouver – which saw luxury home sales rise by 25 pet cent, followed by Montreal at 21 per cent, and Calgary at a more-modest 16 per cent.
The GTA saw a greater number of multiple offers, fewer days on the market, and a growing number of properties selling above list price in the luxury home sector. Tighter inventory of homes over $1 million bolstered consumer demand and overall economic and market confidence. This, coupled with the affordability of high-end homes relative to the GTA’s income levels, added to the spike in sales – factors that are expected to play a primary role in the luxury home market this year as well.
“With home prices in the conventional market climbing steadily, the entry price for a luxury home in the Greater Toronto Area steadily shifted upward, particularly in the City of Toronto’s Central Core, where the entry prices for a luxury condominium, attached home and detached single-family properties are approximately $1.5 million, $2 million and $2.5-3 million respectively,” according to the report. Meanwhile, “In premier luxury neighbourhoods, prices matched strong demand."
In November 2014, the average sale price for a single-family home surpassed $2.2 million in Rosedale-Moore Park, while Toronto’s renowned Bridle Path/Sunnybrook/York Mills district saw average sold prices exceed $3.2 million. Scroll down for more sales stats.
Sotheby’s International Realty Canada president and CEO Ross McCredie notes, “2014 was another benchmark year for high-end real estate in Canada. . .We expect the market to remain strong in the GTA and Vancouver well into 2015, and for demand to outweigh available inventory, especially when it comes to detached single-family homes. The outlook for Montreal and Calgary is positive, but more conservative – both cities are heading into the year positioned to maintain balance.”
Related reading:
Luxury Homes Growing in Property Type, Area and Buyer
Canadian Home Prices Moderating – But Not Everywhere!
About Lydia McNutt
Lydia McNutt is an award-winning writer and editor.