Toronto home sales have skyrocketed over the past year, and the luxury real estate market is no exception.
After a dip during the beginning of the pandemic where there was economic uncertainty coupled with thousands of residents leaving the city for rural areas, a new report from Engel & Völkers found that the luxury market has not only come back but is well above pre-pandemic levels.
This growth has been seen across all facets of the luxury market. Condo sales between $1 million and $3.99 million doubled in the first half of 2021 compared to 2020.
Single-family homes, which have been in high demand over the past year as buyers looked for more space at home, were also drivers in the luxury market. Toronto house sales over $4 million increased 141.6% in February 2021 compared to February 2020. In February of last year, just 12 homes at this price point sold. In February 2021, 29 sold.
And with homes across the GTA regularly selling for $200,000 to $500,000 over the asking price, the average GTA home price hit $1.1 million in May of this year — a 28.4% increase from May 2020.
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The good news is that Engel and Völkers predict that the market will balance out after the buying frenzy at the beginning of the year.
“While the city and GTA have not run out of buyers and sellers, Engel & Völkers predicts a slow summer and holding pattern scenario as lockdown restrictions ease,” the report reads. “With some companies opting for more flexible work situations, buyers may continue to look for homes outside the downtown core.”