Luxury Homes on the Rise in the GTA
By Lucas on Jul 09, 2014
Recently, Sotheby’s International Realty Canada released the 2014 Mid-Year Top-Tier Real Estate Report, highlighting four metropolitan areas where luxury homes are growing increasingly popular.
Sotheby’s definition of a luxury home is any home that sells for more than $1 million, a fair assumption for now. Recent Toronto Real Estate Board (TREB) reports have the average selling price for detached homes in the 416 region well over $900,000. If the average reaches over $1 million, it may not be fair to call all homes over $1 million luxury homes! But for now, we can all agree that you can get a pretty luxurious home for $1 million.
The report accounts for all luxury homes sold from January 1 to June 30, 2014. In the Greater Toronto Area (GTA), luxury home sales increased by 34 percent compared to the same period last year. Vancouver saw the same gain, while Calgary’s luxury home sales increased by 17 percent and Montreal’s grew by 11 percent.
Crafthouse interior - via orchardridgehomes.com
The GTA saw 3,956 luxury home sales, including condos, attached and detached homes. The sale of luxury condos increased by 54 percent compared to last year, while attached homes went up by 40 percent and detached homes saw a 31 percent gain. Even though detached homes saw the smallest increase, they made up the majority of the luxury home sales, accounting for more than 3,500 of the total sold, 41 of which sold for more than $4 million!
Sotheby’s credits historically low interest rates, a tight housing inventory, increased consumer confidence, and population growth due to immigration for the GTA’s success in the luxury home market.
How do you think the second half of the year will fare?
Feature image via Sotheby's Realty International Canada
