While luxury homes sales in the Greater Toronto Area (GTA), Oakville and Hamilton-Burlington have fallen short of last year’s record-breaking pace, this segment of the market will still see plenty of move-up activity in 2018. This is according to a report released today by RE/MAX INTEGRA Ontario-Atlantic Region.
2018 Luxury Property Sales Align With Healthy 2016 Levels
The 2018 RE/MAX Luxury Property Report reveals luxury homes sales in Toronto, Oakville and Hamilton-Burlington fo rthe first two months of 2018 fell short of 2017’s record-breaking pace, but will still see plenty of move-up activity. The report found 76 properties over the $3-million price point sold in the GTA between January 1 and February 28, down from 180 during the same period in 2017. Homes priced $5 million plus fell 46 per cent in the GTA. Oakville reported six sales over $3 million, compared to 15 one year ago. Hamilton-Burlington saw 59 homes over $1 million sold in January and February, versus 133 in 2017.
“Sales of upper-end homes year to date are more in line with 2016 volumes rather than 2017, which should be distinguished as an outlier year for luxury real estate,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Region. “Any comparison will fall short of 2017 levels throughout much of the spring, but demand for luxury product is likely to improve by early summer and carry through to the remainder of the year.”
Only Toronto condominiums and townhomes bucked the trend, with eight sales over $3 million in 2018, up from five during the same period in 2017.
About RE/MAX and the Luxury Market:
RE/MAX sells more luxury property over the $5 million price point than any other real estate company in the Greater Toronto Area. Between January 1 and December 31, 2017, RE/MAX participated in 96 residential transactions, almost double that of their closest competitor.
Foreign investors are and will continue to be a major driver of sales at the top end of the GTA housing market. “The accumulation of real estate is an integral component of their overall investment strategy, and as such, the foreign buyer tax is not a deterrent. It is just the cost of doing business in Ontario,” explains Alexander.
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