High-end buyers fuel GTA market growth in Q4 2024, with strong sales over $5m and suburban gains
Sales in the Greater Toronto Area's (GTA) luxury housing market surged during Q4 2024, with properties over $3m increasing more than 40 percent compared to the same period in 2023.
Data from RE/MAX Canada shows 360 freehold and condominium sales in this segment, up from 259 sales in Q4 2023.
RE/MAX Canada President Christopher Alexander attributed the growth to rate cuts by the Bank of Canada, which he said stimulated demand across the GTA.
“We've been expecting a surge in top-tier sales activity,” said Alexander.
The data showed sales over $5m rose 59 percent, with over 80 properties sold. Homes priced above $7.5m increased by 41.2 percent, while sales over $10m remained stable.
Toronto proper accounted for 53 percent of Q4 luxury sales, slightly ahead of the surrounding suburbs.
Areas like Rosedale-Moore Park led sales in Toronto, while Oakville dominated suburban markets with eight sales over $5m.
Market conditions included pent-up demand, softer housing values, and increased inventory, but Alexander highlighted the 100-basis-point rate drop as the main driver.
Secondary factors, such as strong stock market performance—NASDAQ up 30 percent, S&P/TSX composite index up 18 percent—and easing inflation, also supported high-end property investments.
In 2024, annual GTA sales over $3m rose almost 4 percent, totalling 1,514 properties. Sales over $5m grew 21 percent, and those above $7.5m and $10m climbed 18 percent and 17.4 percent, respectively.
Luxury detached homes remained in high demand, while condominium inventory grew, particularly downtown.
A shift toward luxury condominiums is underway, driven by aging sellers seeking opportunity and security. Developments like the Bridle Path project, featuring large units, have seen strong pre-sales.
Domestic buyers dominated the market in 2024, though activity from wealthy young Chinese immigrants has increased.
Statistics Canada noted nearly one-third of first-time buyers in Canada received down payment assistance from family, highlighting the role of wealth transfer in home purchases.
Toronto's global prominence also supported demand. The city ranked 13th in high-net-worth individuals in the 2024 World's Wealthiest Cities Report by Henley & Partners.
Alexander predicts continued growth in 2025, fuelled by robust equity markets, lower rates, and Canada Mortgage and Housing Corp.’s extended insurance coverage to $1.5m.
However, he identified inventory and political changes as potential wild cards.
