Market Commentary by Barry Cohen Luxury property sales remain strong in the first quarter of 2022 despite a continued shortage of listings in the GTA On the heels of a record-shattering 2021, luxury home sales in the Greater Toronto Area (GTA) continue to climb, surpassing last year’s first quarter numbers by double-digits in 2022. Year-to-date sales for both freehold and condominium properties over the $3 million price point are up over 25 per cent, with 704 homes changing hands in the first three months of 2022, up from 560 sales during the same period in 2021. Uber-luxe sales at the $5 and $7.5 million price point rose approximately 18 and 14 per cent respectively, while sales over $10 million fell just short of 2021 accelerated levels. The pace of homebuying activity at the top end remained unrelenting in the first quarter. An influx of listings early in the year contributed to strong sales in January and February, but sales softened in March as supply virtually evaporated. The impact was evident across every price point in the GTA, with inventory exceptionally tight in Toronto proper. As of April 4th, there were 290 properties listed for sale between $2 and $3 million, 140 available between $3 and $4 million, and just 14 homes listed for sale between $8 and $10 million.
Luxury Freehold/Condominium Sales in the Greater Toronto Area January 1st, 2022 to March 31st, 2022 2022
BARRY COHEN, President/Broker Cohen Homes & Estates
2021
% Change
Freehold
Condo
Total
Freehold
Condo
Total
$2 million plus
2766
75
2841
1853
53
1906
49.1%
$3 million plus
673
31
704
545
15
560
25.7%
$5 million plus
105
6
111
91
3
94
18.1%
$7.5 million plus
24
0
24
21
0
21
14.3%
$10 million plus
8
0
8
10
0
10
-20.0%
Source: Torontomls.net, TRREB MarketWatch
In years past, there was a larger selection of properties available at almost every price point in the luxury segment. During April and May, a greater number of buyers were competing for a fewer number of listings – which created bidding wars at price points not seen before. Almost 50 per cent of home sales over $3 million in the GTA were sold at or above list price in the first quarter of this year – with the lion’s share of bidding wars occurring in the $3 million to $3.75 million price range. One in four homes sold over $5 million moved in a multiple offer situation. Affluent domestic buyers continued to represent the vast majority of buyers again in the first quarter of 2022. Despite the federal government achieving its target of 401,000 new permanent residents in 2021, they have yet to translate into an uptick in luxury sales. As the 2021 – 2023 immigration level plan ramps up and borders fully reopen, demand is expected to climb, especially in Toronto proper, a perennial favourite with newcomers. From an economic perspective, the Canadian economy is expanding at a rapid pace, with recent job numbers bringing unemployment rates to 5.3 per cent, the lowest level since the 1970s. Many homebuyers accelerated
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