GTA Luxury Market Surpasses 2018 Levels
November 28, 2019
GTA Luxury Market Surpasses 2018 Levels – After a rather sluggish start to the year, as of the end of October, sales of luxury GTA real estate has surpassed 2018 levels.
Both the top and bottom of the GTA’s luxury segment have witnessed increases. Sales of freehold and condominium properties above $2 million were up by 9%, while properties above $5 million were up by 8.5% when compared to the same period last year. The average price of a freehold property over $5 million now hovers at $6,517,143, a decrease of 3.11%.
Currently, Toronto has witnessed the strongest recovery with sales over $5 million, increasing by 26% when compared to the previous year. York Region noticed the second-largest recovery, with a 22% increase in sales.
Demand for apartments and townhomes at higher price points continued to climb, as baby boomers and empty nesters look to downsize to more manageable home sizes.
As of the end of October, there were 118 upscale condominium apartments and townhomes listed for sale over $2 million print in Toronto, with an average price of $3,510,743.
Currently, in Markham, there are 70 luxury detached homes over $3 million available for sale, while 21 luxury detached homes have been sold with an average price point of $3,502,955. In the community of Stouffville, there are 17 luxury detached homes available for sale, while 2 have sold with an average sale price of $3,800,000.
During 2019, the economy has been performing well with unemployment levels at record-lows, reasonable interest rates and strong returns in the stock market. These positive indicators have allowed affluent domestic homebuyers to once again return to the uber-luxe market.
Not only have domestic buyers returned, but buyers from Mainland China are also slowly making their way back into the GTA’s high-end market. During the build-up in 2016 and 2017, Chinese buyers were responsible for an estimated 60% of home-buying activity for properties $6 million and higher. Immigration as a whole will play a key role in the continued success of the luxury market, as High Net Worth Individuals (HNWIs) from outside Canada choose this country to call home. According to the New World Wealth Report, approximately 4,000 HNWIs emigrated in 2018 and it is anticipated that the trend will continue.
Demand for high-end properties will continue in 2020 causing home values to increase. Interest from both the foreign and domestic markets will keep all properties within the luxury market active in 2020. As the market continues to get healthier and stronger, now might be the time to put the luxury property on the market.
* GTA Luxury Market Surpasses 2018 Levels – written by Benczik Team Realty
For more information on your home, visit our website and get a free home evaluation to ensure you get the best seller’s service! With experience around Markham, Stouffville, Unionville, and all of York Region, Benczik Team Realty works to serve you in the best way possible! Act now, and don’t miss out on this ever-growing market.