March 1, 2023

Luxury Condo Sales – February 2023

In February 2023, the luxury condo market in the downtown core saw a significant increase in activity compared to previous months. A total of 12 properties sold for over $2,000,000, the highest number since April 2022. The average sale price was $2,846,250, a bit lower than recent months due to an increase in properties trading closer to the $2,000,000 mark, and very few ultra-luxury properties available.

Out of these 12 sales, only four properties traded above $3,000,000, with the highest price achieved for a property at One St Thomas, one of the most sought-after buildings in the city. Despite the increase in activity, there continues to be a lack of available property for people to buy, with buyers being very particular and happy to take their time to find the right property.

While buyers are still active in the luxury condo market, they are more focused on finding the perfect property without the pressure to make a quick decision. The market saw only 39 new listings above $2m in February, down 30% from the previous year, which is less than we need to be seeing in a balanced market.

The continuing interest rate increases are one major factor impacting the market, with potentially one more increase from the Bank Of Canada over the coming month. While the increases in interest rates do play a large part in real estate affordability, the rates we are seeing today are essential to create a balanced market. The value of excellent properties in prime locations is less impacted by changes to interest rates and more impacted by the levels of supply available for buyers.

Despite these challenges, the luxury condo market continues to stay strong, with well-positioned properties seeing a fair amount of interest and sale prices remaining high. Buyers active in the market right now have more patience and availability to take their time to find the perfect property. However, with the lack of good quality supply, it is anticipated that come spring, there will be more interest from on prime properties and less ability for patience from buyers. 

If you’re interested in the luxury condo market or have any questions about what to expect in the next few months, feel free to reach out for more information.