After a slow start to the year, sales of luxury homes are on the upswing in the GTA, according the RE/MAX 2019 GTA Uber-Luxe Property Report.
It's possible that luxury homes are being snatched up due to the average price of luxury properties decreasing from last year. This year, properties over $5 million average in price at $6,517,143, which is down from $6,726,532 in 2018.
But, it could also be due to the fact that buyers are performing little research into their investments.
“Homebuyers at virtually all price points — including uber-luxe — are kicking the tires once again. As a result, momentum is building in the overall market, which is reflected in the escalation in sales at both the $2 million and $5 million price points,” Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada, said.
In Toronto alone, sales of homes over $5 million were up 26 per cent compared to last year. The top neighbourhoods for home sales in the $5-million-plus category are Forest Hill and Rosedale. York Region followed in second place with a 22 per cent increase in sales.
According to RE/MAX Canada, demand for apartments and townhomes at higher price points also continue to climb, thanks to Baby Boomers and empty nesters who are seeking to downsize.
But with this demand comes inventory issues.
Right now supply and demand aren't matching up throughout the downtown core, placing upward pressure on prices.
Currently, upscale condominium apartments and townhomes are being listed for sale over the $2 million price point in Toronto-proper, with an average price of $3,510,743.
by Olivia Levesque via blogTO