Toronto’s ultra-luxury market thriving – Toronto Sun

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In Toronto, a total of 8,120 residential homes priced from $1 million to $3.99 million sold last year compared to 9,410 in 2022


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Despite high interest rates, inflation, wars and a foreign buyer ban, Toronto’s ultra-luxury real estate market “thrived” last year, Engel & Völkers reports.

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According to its 2023 Year-End Luxury Real Estate Market Report – which offers insights drawn from data on homes priced from $1 million to $3.99 million and those priced over $4 million in Canada’s high-demand metropolitan markets – 31 homes with price tags of $8 million or higher exchanged hands in Toronto last year.

Seventeen per cent fewer home sales over $4 million were reported in 2023 compared to 2022 but it’s important to remember that the ultra luxury market depends largely on foreign buyers.

The category outperformed pre-pandemic times, with just 15 homes priced over $8 million selling in 2019.

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A total of 8,120 residential homes priced from $1 million to $3.99 million sold last year compared to 9,410 in 2022. While that number dropped by 14 per cent, average home prices held relatively steady, averaging $1.6 million in 2023 – a year-over-year decrease of 1.5 per cent from $1.65 million. In the condo market, supply outpaced demand but the average price consistently hovered between $1.3 million to $1.4 million.

In the $4 million-plus category, 281 residential units sold in 2023 compared to 340 in 2022. The average price of $5.67 million represents a one per cent increase over 2022’s average of $5.598 million.

The total number of condos sold over $4 million was 26, which dropped by just one unit year over year. The average price in that category was $4.9 million in 2023, compared to $4.47 million the previous year.

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Luxury markets in other parts of the country also demonstrated “remarkable stability and resilience” last year.

In Ottawa, two properties sold for over $6 million – the first time since 2014 – driving a 24 per cent increase in average prices for homes over $4 million.

In Montreal, the number of units valued at $1 million to $3.99 million that exchanged hands dropped 12 per cent annually, but average prices decreased just 0.62 per cent. Though sales of properties exceeding $1 million dropped 16 per cent in Halifax last year, the average sales price increased 13 per cent year over year. Vancouver’s luxury real estate market “defied flux” and was characterized by “unyielding stability” in $1 million to $3.99 million home price averages.

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The luxury market shows no signs of slowing down, the report reveals. “Looking ahead to 2024, Canada’s real estate markets are poised for a dynamic year as buyers and sellers adeptly navigate the evolving conditions,” says Engel & Völkers Americas President and CEO Anthony Hitt.

He’s optimistic the latter half of the year holds promise for sellers. “The Bank of Canada is expected to marginally reduce interest rates, set to trigger clustered demand, fostering competitive conditions. The good news is after years of precariously low inventory, the past 12 months have seen a build up and it will be there to meet demand.”

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