Toronto Luxury Real Estate Market Updates and Forecasts

TORONTO, Feb. 28, 2022 /CNW/ - 2022 is a year of unprecedented times. As we creep out of the pandemic, its impacts continue keeping the residential market inflamed and contributing to Toronto's luxury housing market's unbelievable growth.

Last year, the Toronto market shattered sales records, which will carry on into 2022. The pandemic ignited a trend of consumer preference leaning towards more space, and buyers have taken advantage of incredibly low interest rates. The job market will never be what it was pre-pandemic. Employees are demanding higher pay and more flexibility in their work arrangements. Ultimately, 2022 will be a year where hybrid and remote work arrangements cement buying trends for years to come.

Cryptocurrency is also making its debut in the real estate industry and will likely become a commonly used payment form for luxury homes. This isn't a future possibility. It's a present probability and eventual certainty. 

When it comes to the housing market, it's crucial to recognize that not all sectors behave the same. The luxury housing market is a beast of its own and doesn't respond in alignment with more affordable sectors. Unlike other inner-city units, demand for mega-units with ultra-luxury amenities never dropped and, in fact, increased during the pandemic.

In the GTA, homes priced over $4 million experienced substantial year-on-year growth of about 12%. While they didn't keep pace with the market average of 20%, this is impressive growth for the upper end of the market. Furthermore, the Toronto Regional Real Estate Board (TRREB) reported that the number of luxury homes sold on the MLS in 2021 increased by an astounding 238%. This is so interesting because listings across the entire market were down over 18% in the same period. Therefore, the luxury home market is transacting at a comparatively higher rate than the rest of the market.

Off-market listings are becoming increasingly popular in the upper end of the market, making the increase in listing numbers even more impressive. Sellers find off-market listings attractive as it allows for better privacy and more control over their listings.

2022 will bring further value appreciation in the luxury home market, albeit at a slower rate. Rising interest rates and a compromised macro-economic environment will impact consumer confidence, thus dampening the market's growth rate. Nevertheless, as the borders reopen and restrictions ease, the coming year will likely bring many surprises for buyers, sellers, and real estate professionals.

SOURCE Suzy Goldstein Team

Suzy Goldstein, Founder, Suzy Goldstein Team, Phone: [phone], Email: [email protected]