March seems to have come faster than we could have imagined, but I guess that comes as no surprise considering how busy life has been getting back to some resemblance of normality. The luxury real estate market was no exception. Although February is usually a relatively slower time of year due to the weather, lack of listings and less desire to be out house hunting, this February was one of the most active months in luxury real estate ever.
In total, there were 23 condos sold in the downtown core in February above the two-million-dollar price point. As a result, this February was the third-best month for the total number of luxury condos sold ever, only behind September and November last year. On average, these properties sold for over $3,200,000 after being on the market for just 22-days. The average sale price was slightly lower than in past years due to the increasing number of smaller properties breaking the $2m barrier. In 2019 (pre-pandemic), the average $2m+ sale size was just under 2,500 square feet and sold for over $1,650 per square foot; in 2022, the property size had decreased to just over 2,100 square feet at an average price of $1,550 per square foot.
The main driver for the increasing number of sales in the luxury market has been the number of new listings coming to the market. February saw an influx of new listings and proved that the demand is there as long as the supply is available.
Takeaway: Buyers are very confident in the luxury condo market’s long-term outlook and have been very active over the past month. The lack of inventory we have seen over the last few months is changing as more sellers feel confident in achieving their goals. As a result, the new few months should see strong increases in activity and pricing as long as there are enough new listings to meet demand.
For more information on the market or any questions you may have on what to expect over the next few months, please feel free to give me a call or send an email.
Dylan Donovan, Broker
Chestnut Park Real Estate
*Numbers are based on condo apartment above $2,000,000 in area C01, C02, C08 & C09 between January 1st and January 31st, 2022 as reported by the Toronto Real Estate Board.