Luxury home sales have often been a good indicator of the state of the global economy. Foreign investors often hold real estate throughout the world, so a major shake-up to the global economy would have a definite impact on luxury home sales in Toronto.
So how does Toronto fare?
First, let’s clarify something. The term “luxury” as it applies to home prices is different depending on location. In some areas of Canada, a luxury home could be one priced at $950,000. In Toronto, however, that is the average price of a detached home. Let’s just say luxury homes in Toronto are homes priced above the $4,000,000 mark. Currently there are approximately 116 luxury detached homes for sale in Toronto, and have been on the market for an average of 83 days (so far). In 2018 there were 76 luxury detached home sales in Toronto, with an average sale price of $4,656,722, selling for 97% of asking, and on the market for 28 days on average. Essentially, that is 1% of total home sales in Toronto for 2018.
Canada’s economy is quite strong. The previous introduction of the foreign buyer’s tax, mortgage stress test, and interest rate hikes did have an impact on luxury home sales in Toronto. Let’s keep in mind that these homes don’t turn over as fast as an average detached home. We won’t even work 2017 into the equations, as that year was particularly stellar for Toronto real estate. With all that being said, is Toronto’s luxury home market still strong? As of today, yes. However, the future depends on what happens around the globe. Stock markets, employment, trade deals, even the US President, can all impact the luxury market here in Toronto.
The team at MAC Real Estate Services Inc., Brokerage know and work with luxury home sales in Toronto. We are familiar with Bridle Path real estate, along with many other Toronto luxury home markets, such as Rosedale, Forest Hill, and much more. We are connected with the global market and are experts in Toronto real estate. We know just what it takes to market these unique and rare properties.
We’d love to hear from you, so call us today to book your complimentary private consultation.