Uber-luxe home-buying activity soars in 2020, setting new record for sales over $3 million in the Greater Toronto Area, says RE/MAX
More than 1,000 properties changed hands $ 3 million Price point in 2020, up 55.7 percent from 2019 (1,062 versus 682) and one percent more than the 2017 record (1,062 versus 1,047). The number of houses sold $ 4 million year-to-date up 53.4 percent (379 versus 247) while sales exceeded $ 5 million rose 44 percent in GTA to 180, up from 125 in 2019.
“The boom in houses – during one of the most turbulent periods in recent history – was nothing short of remarkable,” he says Christopher Alexander, Chief Strategy Officer and Executive Vice President, RE / MAX von Ontario– –Atlantic Canada. “A combination of economic and psychological factors contributed to a sharp surge in demand and shaped one of the biggest hubs in the history of the GTA real estate market.”
Economic stimulus played a crucial role in the increase in buying activity, but RE / MAX by Ontario– –Atlantic Canada found the COVID-19 lockdown was the real catalyst. With the renewed focus on personal space and the ability to work from home, luxury buyers doubled in size in larger homes and less populated neighborhoods, with some choosing to move entirely from the 416 to the 905 and beyond.
Property sales over $ 3 million As a result, Halton rose outside the 416 area code, and Halton reported a 188.8 percent increase in sales versus $ 3 million (130 versus 45), followed by Peel with 112 percent (89 versus 42) and York with 85.5 percent (180 versus 97) in 2020.
“The same pattern played out in major urban centers in the United States, such as: New York City and San Francisco where the pandemic has tipped the scales in favor of a more suburban lifestyle, “says Alexander.” And while demand is still strong at the 416, where luxury home sales account for 59 percent of total revenue, performance in suburban areas, particularly north and west of the city, is particularly notable. Sales in 905 supported total luxury sales in 2020 and resulted in a record year for luxury real estate in the GTA. “
Lands weren’t alone in their upward momentum. RE / MAX from Ontario– –Atlantic Canada The luxury condos found in the GTA bucked the downward trend in condominium sales in 2020, posting a 28.8 percent year-over-year increase in sales $ 3 million plus (58 against 45). In fact, that’s the number of condos and townhouses that have changed hands $ 3 million, $ 4 million and $ 5 million Price points have all set new records.
“Domestic buyers were in full swing in the GTA real estate market in 2020, which offset a decline in international buying activity,” explains Alexander. “With that segment largely absent for much of the year, the overall strength of the market in what was essentially nine months of activity was pretty incredible.”
Economically, GTA’s luxury segment benefited from the strong economic recovery in the third quarter and a stronger than expected fourth quarter of 2020. 87 percent of the job losses at the Toronto CMA earlier in the year were largely made up by November. After the slump in March, the North American stock markets also posted strong growth in the second half of the year. Historically low interest rates also helped prop up high-end sales. The bank of Canada, which kept the overnight rate at 0.25 percent for much of 2020, indicated that the economic recovery would continue to require “extraordinary monetary support” through 2023.
“The administration of the first COVID-19 vaccine in mid-December will hopefully mark the beginning of the end of the pandemic,” says Alexander, “and create the conditions for a return to normalcy in our daily lives. It will not happen overnight.” The second lockdown could hold back purchasing activity to some extent in the first quarter of 2021, but the market is expected to fling in the spring as numbers improve and the vaccine launches nationwide. “
As borders reopen around the world, immigration will weigh heavily on local housing markets as the federal government turns its attention to economic growth. Just over 400,000 immigrants are expected in 2021, almost half of whom are expected to settle Ontario. Economic fundamentals are also expected to improve significantly in 2021. GDP growth in the province is expected to increase by 4.5 percent.
Alexander notes that the over-luxury segment of the GTA market is only a small fraction of total home sales, but activity at the higher end bodes well for the overall market in 2021.
Via the RE / MAX network
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SOURCE RE / MAX Ontario– –Atlantic Canada
For more information: Danielle Scott, [email protected]416-909-5185; Eva Blay-Silverberg, [email protected]416,505,0627; Lydia McNutt, [email protected]905-301-5980