RE/MAX says Toronto’s luxury housing market is posting double-digit growth as a wave of luxury home buyers flex their purchasing power amid a positive outlook.
Toronto, January 8, 2025 /CNW/ — of the Greater Toronto Area (GTA) Luxury home market will be in full swing in the last quarter of 2024, with sales expected to slow down. 3 million dollars This is an increase of more than 40% over the same period last year. According to RE/MAX analysis, just over 360 freehold and condominium properties were sold in the fourth quarter of 2024, up from 259 sales reported in the fourth quarter of 2023. Canada.
“Impact of the Bank of Japan’s first and second 50 basis point interest rate cuts” Canada “The fourth quarter saw a surge in demand for luxury real estate across the GTA, both in the city and in the suburbs,” said RE/MAX Canada President. christopher alexander. “We had expected a surge in top-tier sales activity as economic conditions and the resulting pause in purchasing appetite encouraged pent-up demand to build up. The fourth quarter did not disappoint.”
Luxury home sales were almost evenly split in the last three months of the year. Toronto Buyers enjoy a slight advantage (53%) as they take advantage of subdued home values, especially in ultra-luxury price ranges such as: 5 million dollars and $7.5 million. Sale ended 5 million dollars According to Toronto Regional Real Estate Board (TRREB) MLS data, the fourth quarter of 2024 reported the most significant increase, with more than 80 properties changing hands. This is an increase of almost 59 percent compared to the same period in 2023. Home sales recorded an increase of 41.2%. $7.5 million (24 to 17), the number of homes sold was 10 million dollars It was on par with the previous year’s level.
“The luxury segment will outperform the overall market by 2024,” Alexander said. “Wealthy buyers seem to be used to it.” in toronto A higher land transfer tax structure was implemented. January 1, 2024. The initial shock of the tax increase has likely subsided and buyers are simply treating it as a cost of doing business. However, nearly half of luxury goods sales 5 million dollars The incident occurred on the outskirts of the city, TRREB reported. Last year, 905 sales accounted for only 36% of luxury home buying activity. ”
Although ideal market conditions existed throughout much of 2024, including pent-up demand, soft home prices, and rising inventory levels, the 100 basis point decline in overnight interest rates was the primary catalyst for stronger buyer enthusiasm. It became. Given that the Nasdaq ended the year up 30 percent, secondary factors such as rising levels of consumer confidence coupled with the stock market hovering near record highs in 2024 also played a role. The S&P 500 rose 24%. The Dow Jones rose 13%. Closer to home, the S&P/TSX Composite Index rose 18%. In addition to the strong performance of financial markets, easing inflationary pressures was another factor that contributed to the rise in wealth of wealthy investors.
“At the end of the year, profit-taking spread, with many stakeholders converting paper wealth into material wealth,” Alexander explained, noting that this scenario was also playing out south of the border. Luxury real estate is recovering in prime U.S. markets, including: miami, new york, Los Angeles and san francisco In the last quarter of 2024.
“With increased homebuying activity, the luxury market is poised for strength in 2025,” Alexander says. “After a few years of soft sales at the high end, wealthy buyers are able to move forward again with confidence. Supply is and will continue to be a major deterrent to strong buyer intent. We expect that trend to continue, but we expect more listings to be made, offset by an increase in buyers moving away from the stream. ”
Market conditions varied by region in the fourth quarter, with prices stable in regions where supply was tightest, while regions with greater selection saw declines of 5% to 10%, especially . 5 million dollars to $7.5 million price range. For example, the average price of 84 homes sold is 5 million dollars hovered over $7.56 million In the fourth quarter of 2024, it decreased by almost 7% compared to the same period last year. $8.1 million Average price for sales in Q4 2023. in toronto The Rosedale-Moore Park area saw the most activity, followed by 13 sales in the fourth quarter. forest hill south (7), Bridle Path-Sunnybrook-York Mills (5), St. Andrews-Winfields (5). In the suburban market, oakville (8) Leading 905 in sales over 5 million dollarsfollowed by richmond hill (6), Vaughn (4), king (4) and Milton (4).
On a year-over-year basis, a strong fourth quarter pushed overall luxury home buying activity above 2023 levels. Sales of more than 3 million dollars In 2024, the price range increased by almost 4%, with 1,514 units sold over the entire period. metropolitan torontoup from 1,456 a year ago. Luxury sales rose 21%. 5 million dollars298 sales were reported in 2024 compared to 246 in 2023. $7.5 million increased by 18%, with 72 properties transferred in 2024 compared to 61 in 2023. 10 million dollars There were 27 homes sold in 2024, an increase of 17.4% from 23 homes sold a year ago. Fourth quarter sales accounted for 24% of total luxury home sales in 2024, compared to 17.7% in 2023.
While single-family luxury homes remained in high demand, condominiums experienced disruption across all price points in 2024, with the city’s downtown core seeing a significant influx of inventory. However, luxury home buyers are slowly returning to the top end of the market, and a recovery is expected by late 2025 to early 2026 as aging sellers move laterally into luxury condominiums. Opportunity is the main reason for the move to condos in the GTA this year, followed by safety and security. Some luxury condo developments are attracting interest, a sign that the tide is changing. For example, new luxury condominium projects with large units in Bridle Path are selling well in pre-sales.
While domestic buyers have been the most active in the market this year, there has been a resurgence in luxury home buying activity among young landed Chinese immigrants, many of whom are seeking help from their parents abroad. China Despite stricter policies against foreign ownership in some countries, they have significant purchasing power in all categories of luxury goods around the world, and real estate is no exception. Wealth transfers from baby boomers continue to empower Gen Canada Over the next 10 years. Often this happens early in life in the form of an early inheritance gifted from a living relative. statistics Canada Reports show that nearly one-third of first-time buyers Canada Cover all or part of the down payment with money from your parents or relatives. Wealth transfers are supporting home buying activity across all segments, including the luxury and ultra-luxury segments.
In the “World’s Wealthiest Cities Report” released in mid-2024, londonHenry & Partners, based in Toronto It ranks 13th in the world in terms of the number of wealthy people. Despite an expected slowdown in population growth, overall demand for real estate remains Toronto Sales of single-family homes in particular are expected to remain strong, especially as single-family homes will account for a smaller share of total sales in the coming years and higher-end single-family homes will increase due to rising prices and limited supply. It is.
“With the fundamentals we are seeing taking shape, we are poised not only to maintain strong levels of luxury activity in 2024, but to exceed them in 2025. We have it,” Alexander said. “It’s clear that a strong stock market and low interest rates are increasing optimism among buyers. Canada Mortgage Corporation has expanded insurance coverage. $1.5 million For first-time buyers, as younger buyers return to the housing market, the ripple effect is expected to spread across all price ranges, including the highest price ranges. In addition to the inventory, a wild card may be how the political situation develops with the expected changes in the leadership of both countries. Canada And the United States.”
About RE/MAX Network RE/MAX, LLC, one of the world’s leading real estate franchisors, is a subsidiary of RE/MAX Holdings (NYSE: RMAX), with more than 140,000 agents in approximately 9,000 offices and operations in more than 110 countries. We are locally based. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC and RE/MAX Ontario-Atlantic Canada, Inc. and RE/MAX Promotions, Inc., which are affiliates of RE/MAX, LLC. Masu. No company in the world sells more real estate than RE/MAX, as measured by the residential transaction aspect.
RE/MAX was founded in 1973. Dave Liniger and Gail Linigerour innovative and entrepreneurial culture gives our agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served their local communities for decades, raising millions of dollars each year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, search for residential properties or find an agent in your area, visit remax.ca. For the latest news from RE/MAX Canada, visit blog.remax.ca.
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