The luxury home market in Toronto is leading the country, with unprecedented performance in luxury condo sales, according to Sotheby’s International Realty Canada.
In a release, Sotheby’s revealed sales of $1 million+ homes in the Greater Toronto Area rose by 87% in January and February, compared with the same period last year.
At the same time, the numbers of luxury homes sold for at least $4 million in the GTA “soared” by 144% compared with January and February last year.
And according to Brad Henderson, President and CEO, sales volume, velocity and pricing of $4 million luxury homes in the region will soon beat all previous records.
“The Toronto real estate market has pulled into a league of its own,” said Henderson in the release.
“We expect to see all-star performances across every luxury segment – single family and attached homes, as well as unprecedented performance in the luxury condominium market.”
If recent performance is anything to go by, in the City of Toronto alone, $1 million+ home sales were up 44% in January and February compared to the same time last year.
Additionally, the numbers of luxury homes sold in Toronto for at least $4 million in the GTA increased by 147% compared with January and February last year.
Sotheby’s predicts “exceptional performance” in the GTA’s luxury condo market this spring, with early 2017 sales of $1 million+ condos already exceeding early 2016 figures by 104%.
Within the City of Toronto itself, sales of condos over $1 million rose by 85% in January and February this year, compared to the same time last year, says Sotheby’s. And condos selling for at least $4 million were up 33% compared to the first two months of 2016.
Single-family luxury homes were no different, with detached homes of $1 million+ up 86% in the GTA and 38% in the City of Toronto year-over-year.
The $4 million+ luxury home market is also expected to beat previous gains, with sales in early 2017 rising by 158% in the GTA, and 171% in the City of Toronto, compared to early 2016.
Sotheby’s attributes the growth of Toronto’s luxury home market to a rise in consumer confidence, job creation, and the low Canadian dollar.
“Shifts in demographics, strong consumer and investor confidence, and comparative affordability in the face of escalating single family home prices has propelled steep gains in demand resulting in heated bidding wars, and robust sales,” said the release.
However, overall, Sotheby’s says, Canada’s luxury home market is still facing “unprecedented levels of uncertainty” due to a variety of factors.
Those factors include the impact of government policy, shifting signals on potential new regulation, and “forceful geo-political headwinds on a continental and global scale.”
Nevertheless, it looks like the Toronto luxury home market will be just fine.