Toronto’s ultra-luxury real estate market thrived in 2023

Sales doubled compared to 2019, despite unfavourable market forecasts and foreign buyer ban

NEW YORK and TORONTO, Jan. 17, 2024 /CNW/ – Engel & Völkers unveiled its 2023 Year-End Luxury Real Estate Market Report today, presenting key insights drawn from data on homes priced over $1 million in Canada’s high-demand metropolitan real estate markets.

According to the report, in Toronto, 31 sales were made over $8 million in 2023 compared to 15 in 2019, despite unfavourable market forecasts and the foreign buyer ban (Prohibition on the Purchase of Residential Property by Non-Canadians Act, effective January 1, 2023). Overall, Canada’s luxury real estate markets in Halifax, Montréal, Ottawa, Toronto and Vancouver demonstrated remarkable stability and resilience in 2023. This was despite buyer reservations in engaging with the market due to high interest rates and other compounding global factors, such as wars and inflation. Engel & Völkers is forecasting 2023’s consistent pace will persist until the Bank of Canada initiates a lower interest rate cycle, expected as early as spring 2024. A firm signal from the Bank of Canada will influence a shift in buyer sentiment, instilling confidence in the market.

“Canada’s luxury real estate markets were defined by a resounding stability throughout 2023. Looking ahead to 2024, Canada’s real estate markets are poised for a dynamic year as buyers and sellers adeptly navigate the evolving conditions. At Engel & Völkers, we are optimistic that the latter half of 2024 holds promise for sellers. The Bank of Canada is expected to marginally reduce interest rates, set to trigger clustered demand, fostering competitive conditions. The good news is after years of precariously low inventory, the past 12 months have seen a build up, and it will be there to meet demand,” says Anthony Hitt, president and CEO of Engel & Völkers Americas.

Halifax‘s market saw a 16 per cent reduction in sales exceeding $1 million in 2023. Despite this, the average sales price witnessed a 13 per cent increase compared to 2022.

Montréal‘s units sold valued at $1 – 3.99 million declined by 12 per cent annually, but average prices remained remarkably stable, shifting down by just 0.62 per cent.

Ottawa saw two properties sold for over $6 million, the first time since 2014, driving a 24 per cent increase in average prices for homes over $4 million.

Toronto‘s ultra-luxury market saw over 50 per cent more sales above $8 million, compared to 2019, despite unfavourable market forecasts and the foreign buyer ban.

Vancouver‘s luxury real estate market defies flux in 2023, seeing unyielding stability in $1 – 3.99 million home price averages.

Engel & Völkers Americas 2023 Canadian Luxury Real Estate Market Report

About Engel & Völkers

Engel & Völkers is a global luxury real estate brand. Founded in Hamburg, Germany, in 1977, Engel & Völkers draws on its rich European history to deliver a fresh approach to luxury real estate in the Americas with a focus on creating a personalized client experience at every stage of the home buying or selling process. Engel & Völkers currently operates approximately 300 shop locations with approximately 6,000 real estate advisors in the Americas, contributing to the brand’s global network of over 16,600 real estate professionals in 34 countries, offering both private and institutional clients a professionally tailored range of luxury services, including real estate and yachting. Committed to exceptional service, Engel & Völkers supports its advisors with an array of premium quality business services; marketing programs and platforms; as well as access to its global network of real estate professionals, property listings and market data. Each brokerage is independently owned and operated. For more information, visit www.evrealestate.com.

SOURCE Engel & Völkers