The GTA real estate market soared sky-high in 2021, and the luxury market was no exception to that.
In fact, according to a new report from Sotheby’s International Realty Canada, the number of luxury properties in the GTA sold over $4 million shot up a whopping 224% compared to 2020 with a staggering 805 properties changing hands.
“Canada’s real estate market was redefined in 2021,” said Don Kottick, President and CEO of Sotheby’s International Realty Canada. “There has been a transformative change in Canadians’ perceptions of the importance of their homes as an investment in lifestyle and pleasure, physical sanctuary and security, as well as financial stability and generational wealth.”
And the surge didn’t stop when it came to ultra-luxury properties either. Homes over $10 million accounted for 31 of the GTA property sales recorded on the Multiple Listings Service (MLS) in 2021 — a 238% increase from 2020. The report notes that this is particularly impressive given the fact that luxury sales are continuing to migrate away from the MLS and towards exclusive sales as homeowners increasingly seek to protect their privacy.
The Toronto Regional Real Estate Board reported earlier this month that the average selling price in the GTA for the entire year of 2021 came out to $1,095,475 — a new record for the area. With many home sales now taking place over the $1 million mark, it’s no surprise that Sotheby’s report found that home sales in this price range were up 194% year-over-year, with 52,776 properties sold.
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These gains were seen across every type of housing. Condo sales over $1 million were up 195% year-over-year. Attached homes saw the most significant annual percentage gain of any housing type, with sales over $1 million up a jaw-dropping 288% and sales over $4 million up 267%.
“Local demand was the principal driver of Canada’s luxury and conventional housing market in 2021, as low-interest rates, record cash savings and underlying anxiety regarding future stock market performance continue to encourage diversification into real estate,” the report reads. “A gradual increase in international enquiries on luxury properties through the year reflect an ongoing build-up in demand from expatriates, new Canadians and permanent residents that will flow into the market as travel restrictions gradually ease.”