Luxury property sales in Toronto and across Canada are booming due to uber-wealthy purchasers, despite the high cost of living. A new report from RE/MAX Canada shows that 14.4% more houses over $3 million have sold this year compared to 2023, despite the foreign buyer ban, inflation, and high tax rates in virtually every major city in Canada.
A report indicates a strong start to the year in almost all regions, with 90% of markets experiencing an increase in luxury sales, with over two-thirds experiencing double-digit growth. This indicates a return to overall health in major centers, with stronger home-buying activity pushing sales into the upper end.
The most expensive properties in cities like Saskatoon, Montreal, Calgary, and Edmonton experienced the largest boost in sales volumes, while Vancouver saw only a 2.6% rise in luxury sales between 2023 and 2024. Ottawa saw a 7.7% decrease in higher-end property sales.
Luxury buyers are shifting to markets like London, Halifax, Calgary, Edmonton, and Saskatoon to expand their purchasing power. This is due to lower pricing, better bang for their buck, and cheaper taxes. Toronto and Ontario have the highest land transfer taxes in Canada, with $4 million homes costing approximately $183,000, double what would be in Vancouver. Toronto's luxury properties are primarily attracting buyers above the $5 million mark.
Interest rates remain a significant obstacle to homeownership, with many waiting for rate cuts. Once rates drop, Toronto's housing market is expected to be robust, driven by pent-up demand.
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