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Toronto's ultra-luxury real estate market thrived in 2023

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Published
01/23/2024 by

Engel & Völkers unveiled its 2023 Year-End Luxury Real Estate Market Report today, presenting key insights drawn from data on homes priced over $1 million in Canada's high-demand metropolitan real estate markets.

According to the report, in Toronto, 31 sales were made over $8 million in 2023 compared to 15 in 2019, despite unfavourable market forecasts and the foreign buyer ban (Prohibition on the Purchase of Residential Property by Non-Canadians Act, effective January 1, 2023). Overall, Canada's luxury real estate markets in Halifax, Montréal, Ottawa, Toronto and Vancouver demonstrated remarkable stability and resilience in 2023. This was despite buyer reservations in engaging with the market due to high interest rates and other compounding global factors, such as wars and inflation. Engel & Völkers is forecasting 2023's consistent pace will persist until the Bank of Canada initiates a lower interest rate cycle, expected as early as spring 2024. A firm signal from the Bank of Canada will influence a shift in buyer sentiment, instilling confidence in the market.

"Canada's luxury real estate markets were defined by a resounding stability throughout 2023. Looking ahead to 2024, Canada's real estate markets are poised for a dynamic year as buyers and sellers adeptly navigate the evolving conditions. At Engel & Völkers, we are optimistic that the latter half of 2024 holds promise for sellers. The Bank of Canada is expected to marginally reduce interest rates, set to trigger clustered demand, fostering competitive conditions. The good news is after years of precariously low inventory, the past 12 months have seen a build up, and it will be there to meet demand," says Anthony Hitt, president and CEO of Engel & Völkers Americas.

Halifax's market saw a 16 per cent reduction in sales exceeding $1 million in 2023. Despite this, the average sales price witnessed a 13 per cent increase compared to 2022.

Montréal's units sold valued at $1 - 3.99 million declined by 12 per cent annually, but average prices remained remarkably stable, shifting down by just 0.62 per cent.

Ottawa saw two properties sold for over $6 million, the first time since 2014, driving a 24 per cent increase in average prices for homes over $4 million.

Toronto's ultra-luxury market saw over 50 per cent more sales above $8 million, compared to 2019, despite unfavourable market forecasts and the foreign buyer ban.

Vancouver's luxury real estate market defies flux in 2023, seeing unyielding stability in $1 - 3.99 million home price averages.

Engel & Völkers Americas 2023 Canadian Luxury Real Estate Market Report

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