Luxury Toronto real estate expected to heat up this fall
By Nerwinhomes on Sep 26, 2018
Sotheby’s International Realty Canada just released its top-tier housing figures for July and August, reporting on the Greater Toronto Area, Vancouver, Calgary, and Montreal. With a strong summer for luxury sales, the fall market is looking like it’s going to be hot!
In the GTA, top-tier sales, homes priced above $1 million and above $ 4 million, gained traction during July and August 2018. Home sales at $1 million or more increased 19% year-over-year with 2,296 properties sold. $4 million sales jumped 34% with 47. In the City of Toronto, $1 million home sales increased 13% with 897 properties sold, while $4 million sales grew 52% with 35.
The luxury condo market had a strong summer, increasing 28% year-over-year with 199 $1 million sales in the GTA, 170 of which were in Toronto (21% above last year). There were four $4 million condo sales in the GTA, which is on par with the summer of 2017.
Single family homes (not including attached homes) also saw an increase in top-tier sales. In the GTA, there were 1,916 home sales over $1 million, which is 20% more than last year. 580 of the sales were in Toronto, a 12% jump compared to the same period last year. $4 million sales increased 35% with 42 properties sold in the GTA, 30 of which were in Toronto (up 50% year-over-year).
In the first two weeks of September, there were 378 top-tier home sales in the GTA, which is lower than the 503 sales reported during the same period last year. That said, summer was so strong that Sotheby’s still expects the top-tier market to remain hot through fall to the end of the year.
“Toronto’s top-tier real estate market is positioned for a turnaround this fall,” says Brad Henderson, President & CEO, Sotheby’s International Realty Canada. “Since the introduction of Ontario’s Fair Housing Plan in April 2017, the market has maintained ground in spite of rapid policy changes, as well as rising mortgage rates and tighter lending guidelines. Market psychology has now adjusted and we expect the fall market to return at full throttle.”
“In contrast, high-end sales and prices are softening in Vancouver, not only in the single family home segment, but across the city’s heated condominium and attached home markets,” he adds. “In the upcoming fall market, it will be buyers and investors who will hold the upper hand.”
Sotheby’s is predicting top-tier sales in Vancouver will continue to decelerate this fall. In the first half of 2018, home sales above $1 million fell 19% with just 1,939 properties sold. In July and August, there were only 453 sales, which is a drop of 24% year-over-year. $4 million home sales also fell 33% with 31 sales in July and August.
The increase in listings and slow demand are causing prices to drop in Vancouver. The downward trend continued through the first two weeks of September with only 55 sales, which is a 66% drop compared to last year.
With renewed confidence in the GTA and Toronto real estate market, the typically busy fall should be an exciting season for the top-tier home market. Hopefully, we’re not headed down the same path as Vancouver.
