Affluent GTA Buyers Spark Unprecedented Demand for Upscale Homes in Q1 2016, says Barry Cohen Group
Posted by Barry Cohen Group — May 2, 2016
TORONTO, April 28, 2016 /CNW/ - Affluent purchasers continued to turn up the heat in the first quarter of 2016, fuelling a significant increase in luxury home sales in the Greater Toronto Area (GTA). Seventeen properties, including 14 freehold and three condominiums apartments, changed hands over the $5 million benchmark between January 1 and March 31st, up 112.5 per cent from the eight sales reported during the same period in 2015, according to luxury realtor Barry Cohen.
Sales of homes priced over $2 million also soared, with 500 properties sold between January 1 and March 31 of this year, up 79 per cent from the 279 units sold during the same period in 2015. The performance, based on statistics compiled by the Toronto Real Estate Board (TREB), shattered all existing records for luxury home sales in Q1, with 489 freehold and 11 condominium properties over $2 million moving on MLS this year.
"Performance in the top end of the Toronto housing market continues to defy expectations," says Cohen, a high-end specialist with RE/MAX and the company's number one sales associate in Canada. "Pent-up demand remains the number one catalyst for sales in the GTA, with inventory challenges across the board exacerbating the situation. Despite a relatively constant influx of listings during the traditionally heated spring market, demand continues to outpace supply at every price point."
Cohen predicts the greatest sales activity is yet to come, with demand for luxury product in May and June expected to be especially brisk.
Seventy-seven properties, priced in excess of $5 million, were sold last year, up 108 per cent over the 37 sales recorded in 2014. One thousand, six hundred and sixty seven homes changed hands over the$2 million price point, up almost 43 per cent from 1,168 units reported one year earlier. Most sales occurred in the 416 area code, led by the neighbourhoods that comprise TREB's C12 district, including the Bridle Path, Sunnybrook, St. Andrew's, York Mills and Lawrence Park. High-end product was especially scarce in communities in close proximity to the downtown core, including Rosedale, Moore Park, Forest Hill, Annex, and South Hill.
"Every segment of the GTA housing market is working in tandem, building on momentum realized in 2015," explains Cohen. "Economic improvement, low interest rates, greater stability in the stock market and a solid American greenback are all contributing to heated market conditions in the Greater Toronto Area. These same factors are likely to bolster sales and prices for the remainder of the year, setting off another round of record-breaking performances by year-end, especially at the top end of the market."
About Barry Cohen
Barry Cohen has been the top agent in the city for luxury home sales at every price point over $2 million from 2010 to 2015 combined, according to statistics compiled from the Toronto Real Estate Board. He has ranked as 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.