TORONTO, ONTARIO--(Marketwired - July 4, 2013) - According to the latest Top-Tier Real Estate Report released by Sotheby's International Realty Canada, Toronto's high-end real estate market reflected stability, as well as growth in key market segments, in the first half of 2013 despite a slow start to the year.
In spite of differences between the single family, attached and condominium home markets, the demand for properties over $1 million saw a positive shift after April 2013. According to Toronto Real Estate Board data and insight, buyers who previously withheld making purchases due to the implementation of tighter lending controls by the Bank of Canada in July 2012, returned to the high-end market, many with larger down payments than previously seen. Compared to the last six months of 2012, the first six months of 2013 saw sales of homes over $1 million increasing by 59%.
Single Family Homes $1 Million+
In the first half of 2013, the sales of single family homes across all high-end price segments in the GTA gained momentum and saw significant growth. Sales within the $1-2 million range increased by nearly 61% to 2,192 units, sales within the $2-4 million range increased by 57% to 394 units and sales of homes over $4 million grew by 124% to 38 units compared to the last half of 2012. Overall, 9% of homes over $1 million (226 units) were purchased above their original asking price, reflecting stable demand in the high-end single family home market.
Attached Homes $1 Million+
Luxury attached homes, including townhomes, semis, and duplexes, saw a significant increase in units sold when compared to six months ago. 201 attached homes sold over $1 million in the first half of 2013, 91% more than between July 1 and December 31, 2012 and 21% more than during the same period last year. This included an 81% and 182% increase in sales in the $1-2 million and $2-4 million price segments respectively, when compared to the last six months of 2012.
Strong demand for high-end attached homes was also reflected in the fact that over 27% of units sold between $1-2 million and over 58% of those sold between $2-4 million commanded a selling price that was above the list price.
Condominiums $1 Million+
In spite of speculation about Toronto's condominium market, the data from January 1 to June 30, 2013 reflects overall balance in the high-end segment. 122 condominium units over $1 million sold during this period, 4% more than in the latter half of 2012, and 19% fewer than in the same period in 2012. 102 of the sold units were in the $1-2 million range, a slight 3% drop in sales compared to July 1 to December 31, 2012, while condo sales in the $2 to $4 million range increased by 67% to 20 units.
Market Summary $1 Million+
2,947 single family, attached and condominium homes over $1 million sold between January 1 and June 30, 2013. This was a 59% increase over the last six months of 2012 and a marginal 4% increase in sales relative to the same period last year.
According to Sotheby's International Realty Canada CEO, Ross McCredie, "Given the transition occurring in many of the world's leading economies, Toronto remains one of the most desired markets in a country widely known for strong economic fundamentals and quality of life."
High resolution images and report available upon request.
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Combining the world's most prestigious real estate brand with local market knowledge and specialized marketing expertise, Sotheby's International Realty Canada is the leading real estate sales and marketing company for the country's most exceptional properties. With offices in over 20 residential and resort markets nationwide, our professional associates provide the highest caliber of real estate service, unrivaled local and international marketing solutions and a global affiliate sales network of approximately 600 offices in more than 45 countries to manage the real estate portfolios of discerning clients from around the world.
*The information contained in this report references market data from MLS boards across Canada. Sotheby's International Realty Canada cautions that MLS market data can be useful in establishing trends over time, but does not indicate actual prices in widely divergent neighborhoods or account for price differentials within local markets. This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Sotheby's International Realty Canada or Sotheby's International Realty Affiliates for any loss or damage resultant from any use of, reliance on or reference to the contents of this document.