Consumer appetite for luxury homes drives GTA sales up close to 45 per cent in Q1 2015

279 properties sold over the $2 million price point

TORONTO, April 7, 2015 /CNW/ -The insatiable appetite for luxury homes in the Greater Toronto Area (GTA) continues to grow, with sales of residential product priced over $2 million up almost 45 per cent in the first quarter of 2015, according to luxury realtor Barry Cohen.

Two hundred and seventy nine properties changed hands in the first three months of the year, up from 193 during the same period in 2014.  The performance, based on statistics compiled by the Toronto Real Estate Board, was by far the best start on record for luxury home sales in Q1, with 266 freehold and 13 condominiums sold over the $2 million benchmark.

GTA Residential Housing Sales Over $ 2 Million -- First Quarter
2012	173
2013	147
2014	193
2015	279
Source: Toronto Real Estate Board, MarketWatch

"The value proposition of the Greater Toronto Area remains remarkably attractive, drawing affluent purchasers from both here and abroad," says Cohen, a high-end specialist with RE/MAX Realtron.  "The timing has also added to the mix, given that quality inventory in the city's robust housing market is seriously depleted.  Combine those factors with low interest rates, solid stock market performance, and a strong American greenback, and the likelihood the surge in the upper end will continue is relatively high."

While the greatest number of sales (41) was reported in York Mills, Bridle Path, and Sunnybrook (C12) in Q1, a search of TREB's MLS system showed one of the strongest percentage increases occurred in Lansing, Willowdale (C14) at 120 per cent in the first quarter (22 vs. 10).  Ledbury Park, Lytton Park, and Lawrence Park (C04) experienced an upswing of close to 82 per cent in sales activity, with 40 homes sold in the first three months of the year. 

Yorkville (C02) was the GTA's strongest luxury condominium pocket, with six units sold over the $2 million price point.  Thirteen condos in total were sold in the first quarter of the year, compared to nine during the same period in 2014.

"There continues to be solid movement into condominiums in close proximity to the city's Mink Mile," explains Cohen.  "Many of the buyers are empty nesters from surrounding neighbourhoods who are taking advantage of tremendous equity gains in past years.  They're making what are often lateral moves into a lifestyle that offers low maintenance living within walking distance of some of the city's top restaurants, exclusive shops and boutiques."

The ultra high end, properties priced in excess of $5 million, was also up year-over-year.  Nine freehold properties were sold in the first quarter, the most expensive sold for just over $7 million in Mississauga, followed by Cohen's sale of $6.5 million in the Bridle Path.

There are currently 581 freehold homes and 89 condominiums listed for sale over $2 million in the Greater Toronto Area, including the palatial estate property once owned by financier Robert Campeau, priced at $25 million in the Bridle Path, listed with Cohen.

"The GTA's housing market continues to demonstrate a resiliency that has perplexed many industry analysts and economists," says Cohen.  "The current upward trajectory is approaching the 20 year mark, with overall average price appreciating at a steady pace of approximately seven per cent annually.  With little speculation in the market, today's low interest rate environment, and Canada's sound banking practices, the fundamentals supporting growth moving forward are firmly in place."

About Barry Cohen

Barry Cohen has been the top agent in the city for luxury home sales over $2 million since 2008, according to statistics compiled from the Toronto Real Estate Board. He has ranked RE/MAX' #1 sales associate in Canada several times, earned global recognition by placing #2 worldwide twice for RE/MAX LLC, and is the recipient of numerous RE/MAX Awards, including their highest honour, the Luminary of Distinction.  There are currently only 33 members worldwide, out of approximately 100,000 active agents.  

SOURCE Barry Cohen Group

Barry Cohen, Realtor, RE/MAX Realtron, Office: 416.223.1818, [email protected], www.barrycohenhomes.com; Eva Blay, Point Blank Communications, 416.781.3911, Cell: 416.505.0627, [email protected]