Greater Toronto Real Estate: 2024 Spotlight on Luxury

The Greater Toronto Area’s (GTA) luxury market has sprung back to life in the first two months of the year, with home sales over the $5 million price point leading the way. Thirty-two freehold and condominium properties changed hands between January 1 and February 29, up 77 per cent from the 18 sales reported during the same period in 2023. Of the 32 properties sold over $5 million to date, 17 sales occurred in the 416, while 15 were located in the 905. While the new municipal land transfer tax on the luxury segment in the City of Toronto has had some effect on housing sales at the $3-million-plus price point, sales over $7.5 million have borne the brunt, with only one sale occurring over $7.5 million to date, compared to three during the first two months of 2023.

Overall luxury sales priced over $3 million are trending higher than year-ago levels, with 167 freehold and condominium properties sold between January and February, up more than 14 per cent from the 146 sales that were recorded during the same period last year. Demand is particularly strong between $3 million and $4 million for detached product, but activity in this range is largely hampered by fewer listings available for sale. Just 115 properties were available for sale between $3 million and $4 million in the central core heading into the traditionally busy spring market. Some communities were down to single-digit inventory levels, including Leaside (3); Cedarvale, Humewood, Forest Hill South, and Yonge-Eglinton (5); Banbury-Don Mills (7); the Beaches (4); and Stonegate-Queensway (5).

Realtors with interested buyers have been in constant contact with other realtors regarding upcoming listings in coveted hot pockets and heated price points. Inventory levels remain tight throughout the Greater Toronto Area, with few new listings coming to market at the top end. At least one-third of properties currently listed for sale over $10 million are carryovers from 2023. The disconnect between buyers and sellers remains an issue at luxury price points, where many sellers still expect their homes to fetch similar value to that of the Covid years. Buyers, particularly at uber-luxe levels, are submitting offers at 80 per cent on the dollar but quickly realize that high-end sellers are holding their ground in anticipation of a stronger luxury market down the road. Some areas are more impacted than others, with the Bridle Path in a world of its own, given that listings are especially scarce in the neighbourhood.

Some downsizing is also occurring in the market, with empty nesters and retirees making more lateral moves into luxury condominium apartments, townhomes, and new builds on smaller-sized lots in desirable neighbourhoods. Eleven condominiums have sold for more than $3 million in the first two months of the year, compared to 10 between January and February of 2023. Despite strong demand, new builds on small lots are few and far between.

Interest rates remain the greatest roadblock to homeownership at present, with many waiting on the sidelines for rate cuts. It’s anticipated that once rates start to fall, Toronto’s housing market will be exceptionally robust, with pent-up demand the driving force behind heated home-buying activity.

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About the RE/MAX Network
As one of the leading global real estate franchisors, RE/MAX, LLC is a subsidiary of RE/MAX Holdings (NYSE: RMAX) with more than 140,000 agents in over 9,000 offices with a presence in more than 110 countries and territories. RE/MAX Canada refers to RE/MAX of Western Canada (1998), LLC, RE/MAX Ontario-Atlantic Canada, Inc., and RE/MAX Promotions, Inc., each of which are affiliates of RE/MAX, LLC. Nobody in the world sells more real estate than RE/MAX, as measured by residential transaction sides.

RE/MAX was founded in 1973 by Dave and Gail Liniger, with an innovative, entrepreneurial culture affording its agents and franchisees the flexibility to operate their businesses with great independence. RE/MAX agents have lived, worked and served in their local communities for decades, raising millions of dollars every year for Children’s Miracle Network Hospitals® and other charities. To learn more about RE/MAX, to search home listings or find an agent in your community, please visit remax.ca. For the latest news from RE/MAX Canada, please visit blog.remax.ca.

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