Luxury Property Market

The luxury market sales were about 1% of all properties sold in 2008 and 2009 in Toronto.  There has been a significant increase in 2011 where the number of luxury properties comprised about 1.5% of the total houses sold.  **  

The buyers are mainly divided between off shore and local residents in executive homes now.  They are typically savvy investors and see our prices as reasonable when compared to luxury properties globally. The executive and luxury level of buyer is fairly immune to mortgage rates, utilities and other daily living expenses. With the stock market being somewhat volatile,  executive  houses seem like a safe haven.

We have seen the increase of what is commonly known as the price point from 1 million a few years ago to over 2 million for a luxury Toronto home. The market has bared this increase due to a very favourable mortgage interest rates giving some the opportunity to buy larger than what they would normally be able to do in the past.

As we have seen the market share increase we are seeing the final sales price begin to waiver towards a flatline and even a small drop in price. I will continue to follow the Toronto Luxury Real Estate market in the next quarter to see where prices go and I will look to a study on the average days on the market for luxury homes.

** as per the marketwatch reports from torontomls.net