Canada's Condominium Magazine
Toronto’s luxury home market outperformed the rest of the country in the first half of this year and will continue to do so right into 2015. So says Sotheby’s International Realty Canada, specialists in “top-tier” real estate.
Sales of luxury homes in Toronto, meaning those priced over $1 million, increased significantly in the first half of 2014, and sales growth was substantial in every category: single-family homes, attached homes (townhouses, semis and duplexes), and condominiums. Toronto was, in fact, the only Canadian city where big growth was seen in every home category. Compared to 2013, sales in the luxury home market rose 40–53 per cent in the first half of 2014.
July was a record-setting month for real estate overall in Toronto, but the luxury market performed “exceptionally well,” Sotheby’s says. Homes priced higher than $2 million outsold those in the $1.5–$1.75 million range. The realtor is forecasting that high consumer demand and low inventory will drive continued gains in the GTA, with sellers’ market conditions prevailing.
A possible side effect of the big price gains in luxury single-family and attached homes could be greater demand for high-end condominiums. Demand for luxury condos is already high in the GTA. In the first half of the year, sales of condos priced at $1–$2 million increased by 61 per cent compared to a year earlier. Sales at the next level, in the $2–$4 million range, increased by 17 per cent. Even more surprising is the fact that many of these high-priced condos sold at more than the asking price. But Sotheby’s believes that some buyers who may be priced out of the single-family and attached home categories will turn to condominiums as a more affordable alternative.
It almost goes without saying that the “historically low interest rates, positive economic and employment growth and relative political stability” will continue to support “stable gains” over the coming months.