Luxury real estate sales rose across the U.S. in the first two months of the year, but activity has slowed in large markets like Toronto as soaring prices caused some buyers to look elsewhere. This has been revealed in a new report.
According to a report from RE/MAX, luxury goods sales increased 14% year over year in the GTA, but the region lagged far behind markets such as Calgary, Montreal and Saskatoon (all of which grew more than 50%). I’m taking it. Luxury home sales were reported on Tuesday.
The report found sales of luxury real estate are up 50 per cent as lower prices in the mid-market attract buyers from more expensive provinces like Ontario and British Columbia.
“Affordability is key. The price range for luxury goods in Toronto is much higher than in other cities,” Re/Max Canada President Christopher Alexander told CTV News Toronto, adding that people are looking to splurge elsewhere. He added that many people are moving away from more expensive big cities in order to have a more affordable lifestyle.
“Last year, 60,000 people moved in Ontario alone in search of more affordability.”
He added that sellers are looking for coronavirus-era value for their properties, while buyers are holding out for bargains.
“There seems to be a sort of impasse between buyers and sellers of luxury goods,” Alexander said. “My agent says there are a lot of low budgets coming in from prospective buyers, but sellers are holding on to properties desperately hoping the market will come back.”
“That’s why sales have gone down.”
Alexander added that the impact of taxes in large cities is also weighing on the market.
GTA has seen a surge in sales compared to this time last year. In the GTA, in the first two months of this year he sold 167 homes valued at $3 million, an increase of 14% compared to the same period last year.
The GTA saw the biggest sales increase for home sales over $5 million. Thirty-two freehold and condominium properties were sold between January 1 and February 29 this year, an increase of 77% compared to the 18 sales reported during the same period in 2023.
Activity for homes priced between $3 million and $4 million in Toronto remains low, with several communities including Leaside and The Beach, which have only three and four listings, respectively. I am.
“Sales are up, but not by much…We’re still playing a little bit of catch-up here,” Alexander said. “But he’s definitely recovering and that’s a good thing.”
“A healthy luxury market is usually the first sign that the market as a whole is healthy. That’s certainly encouraging.”
Ottawa is the only region in the report to see a year-over-year decline in luxury goods sales. Alexander said RE/MAX representatives have reported that the upcoming federal election may be the culprit.
He said many buyers, mainly government employees, do not want to buy luxury real estate in the city until after the election.