January 12th, 2022
INSIGHT Market Updates: Top-Tier Real Estate Report: 2021 Year in Review
The country’s major metropolitan luxury real estate markets broke consecutive records throughout 2021 as Canadians’ urgent, pandemic-influenced demand for housing mobility and strengthening confidence in the country’s economic recovery drove price gains, eroded inventory and propelled markets to historic highs.
“Canada’s real estate market was redefined in 2021. There has been a transformative change in Canadians’ perceptions of the importance of their homes as an investment in lifestyle and pleasure, physical sanctuary and security, as well as financial stability and generational wealth,” says Don Kottick, President and CEO of Sotheby’s International Realty Canada. “Within the luxury real estate market, one of the pandemic’s lasting influences has been the elevation in standards of what constitutes ‘luxury’. Today’s affluent consumers are seeking a calibre of architectural excellence, design, technology, service and amenities that meet lofty global standards. This willingness to invest in excellence will continue to foster a competitive environment for luxury real estate in the market ahead.”
According to Kottick, local demand was the principal driver of Canada’s luxury and conventional housing market in 2021, as low-interest rates, record cash savings and underlying anxiety regarding future stock market performance continue to encourage diversification into real estate. A gradual increase in international enquiries on luxury properties through the year reflect an ongoing build-up in demand from expatriates, new Canadians and permanent residents that will flow into the market as travel restrictions gradually ease.
MARKET HIGHLIGHTS
Greater Toronto Area
Overall, the $4 million-plus residential real estate market (condominiums, attached and single family homes) soared 224% year-over-year to 805 properties sold in 2021. Ultra-luxury property sales over $10 million recorded on Multiple Listings Service (MLS) surged 238% to 31 properties sold, even as luxury sales continued to migrate away from MLS towards exclusive sales and marketing platforms as homeowners sought to protect privacy. Overall top-tier real estate transactions over $1 million in the GTA were up 194% to 52,776 properties sold in 2021.
$1 million-plus condo sales were up 195% year-over-year to 3,194 units sold in 2021. The region’s $4 million-plus attached home market experienced a significant 267% increase year-over-year to 16 homes sold in 2021 and saw the greatest annual percentage gains of the housing types. Overall top-tier attached home sales over $1 million increased 288% to 9,188 homes sold. As sales over $4 million increased 227% from 2020 levels to 746 homes sold, ultra-luxury sales over $10 million also surged 223% to 29 properties sold.
To read the full report click the link below (for the City of Toronto and Greater Toronto Area specifically, see pages 17 through 26).
