September 2024 Luxury Market Report
Blog post description.
LUXURY MARKET REPORTS
9/24/20243 min read
Increased Inventory, but limited desirable homes keep prices stable! For homeowners looking to sell this fall, it’s important to recognize that location, customization, innovation, and "the experience" are driving sales in today’s luxury market
In August, Toronto's luxury real estate market has faced a mix of stability and some price moderation. Regardless of the softness in high-end sales, prices have not significantly dropped because of a shortage of new and desirable homes entering the market. There was a notable increase in new listings, with a 15% rise for detached homes and an 18% rise for condos. However, due to a shortage of new and desirable homes entering the market, average prices remained relatively stable, with only a 1% decrease for detached homes (now $3.28M) and a 4% drop for condos (now $1.116M) year-over-year
Key trends:
MOI (months-of-inventory): Detached homes decreased to 7.6 from 7.8 in the beginning of the year to a Balanced Market, and Condos decreased to 11 to a strong Buyers Market. (number of homes available divided by number of homes sold)
SNLR (sales-to-new listings ratio): Detached homes moved to 13% to Balanced Market and Condos to 8.8% - Buyers Market. (Sales Ratio defines market speed and market type: Buyer's < 12%; Balanced >= 12 to < 21%; Seller's >= 21%)
SP/LP (sales price/list price ratio). Most detached homes sold for 95% and condos for 97% of asking price.
Sales: Sales of detached homes increased by 8%, while condo sales decreased by significant 45% compared to the last year
Listings: There was a 15% increase in listings for detached homes and 18% increase for condos.
Prices: Detached homes decreased slightly by 1% and Condos by 4% from last August..
A closer look:
Detached Homes/Single-family Homes (Luxury benchmark price $2.5M):
In a Balanced market.The average price is slightly down by 1% to $3.278M, with sales up 18% compared to last year. These homes are being sold 22 days longer than last year - in 42 days on average. The most active price range is between $3.1 - 3.3M where the sales ratio is 23%. Selling for 95% of the listed price. The most in-demand properties are the homes with 4 bedrooms and 5 bathrooms, for $3M.
Condos/Attached Homes(Luxury benchmark price $915K):
In a Buyer’s market. The average price has decreased by 4% to $1.116M. Sales have decreased by 45% compared to last year. The average time on the market is 33 days (17 day longer). The most active price range is between $2.7 - $3.1M price range where the sales ratio is 13%. These homes are selling very close to their asking price at 97% of the listed price. The most in-demand homes have 2 bedrooms and 2 bathrooms, for $1.1M.
Trends in Property Types and Amenities for the Fall 2024:
Location: a growing trend for tranquility, privacy, and scenic surroundings while maintaining access to luxury amenities like fine dining, shopping, and cultural experiences. Buyers favouring locations near nature and exclusive services like golf courses and marinas. Increasingly investing in non-urban areas such as suburbs, rural locations, and resort destinations like beaches, mountains, and countryside retreats.
Customized and Personalized Homes: homes becoming highly personalized with custom layouts, unique materials, and specialized spaces like wine cellars, home theaters, and hobby rooms. Kitchens and bathrooms with state-of-the-art appliances and spa-like features are top priorities, while recreation areas such as home gyms and bars are tailored to individual preferences. Modern developments also blend privacy with shared community spaces like gardens and lounges, offering both personal retreats and social connectivity.
Innovation: Smart home integration for convenience, security, and energy efficiency, along with functional spaces like laundry rooms and multiple home offices for remote work. Outdoor areas are equally important, featuring amenities such as outdoor kitchens, heated pools, and fire pits for relaxation and entertainment. Health and wellness are key, with private gyms, spa-like bathrooms, and saltwater pools reflecting a desire for a balanced lifestyle. Sophisticated landscaping, lighting, and exterior finishes enhance curb appeal and elevate the overall luxury experience
The “Experience”: More than just premium materials, luxury homes are tailored to buyers lifestyle, incorporating personalized spaces, cutting-edge technology, and wellness amenities.. Whether it’s an integrated smart home system, exclusive entertainment options, or luxurious spa features, the experience of living in a home is central to its appeal.
In the Toronto luxury real estate market, customization, innovation, and lifestyle amenities continue to dominate buyer preferences. Properties with smart home technologies, sustainability features, and personalized designs are particularly sought after . Overall, while the market is adjusting to current economic realities, the long-term outlook remains positive for luxury real estate.
Have more questions about the luxury housing market in Toronto, we're here to help.
Feel free to book a call at 416.726.93.10 or reach out via email TorontoLuxuryGroup@BHHSToronto.ca
September 25, 2024
