2021 was an astonishing year for real estate in the GTA. The Toronto Regional Real Estate Board reported that a record-breaking 121,712 sales were reported through the MLS. Over the past 12 months, buyer demand has reached truly unprecedented peaks.
However, it’s also important to drill down deeper into the niche markets–for one, luxury.
How did the luxury market perform in 2021 and what is the outlook for 2022?
Armin Group is affiliated with Sotheby’s International Realty Canada. Each year, the brokerage helps produce an exclusive Luxury Outlook magazine. You can read the Toronto edition of the magazine here.
Here are a few key takeaways:
The Pandemic Was a Contributing Factor
We can’t ignore the fact that much of the unbelievable market activity was fueled, at least in part, by the pandemic.
The economic ups and downs brought upon by the pandemic as well as geopolitical happenings contributed to many buyers wanting to transition a peaceful, comfortable, and spacious place to call home.
For many, this translated to purchasing a larger home to accommodate work-from-home measures or leveling up their condo to reach new heights of luxury, since most of our time was spent at home.
Rapidly Declining Inventory Led to Increased Buyer Demand and Prices
Inventory levels have been in steep decline over the past year, culminating in December with some of the lowest levels on record to date. As a result, buyer demand across Toronto drove the prices to an unprecedented magnitude.
The average price for a detached home in Toronto in December was over $1.5 million. For condos, the average price exceeded the $711,000 mark. This is interesting because, in years previous, a million-dollar home would be considered quite rare and luxurious. But now, it’s the average.
Luxury has a new meaning in Toronto these days. Check out our report on the new state of luxury real estate in Toronto here.
Corporate Investments Reached New Heights
Toronto is also currently in the midst of a tech boom, we are seeing more and more corporate investments on a higher scale. The anticipation is that this will drive up employment opportunities and create even more demand for real estate in Toronto. We also to continue to evolve as a world-class city and are now considered one of the largest technology hubs on a global level.
2021 was a great year for making real estate moves, whether buying, selling, or investing, there were many opportunities to grow wealth and improve your real estate portfolio. Take a look at some of our top blogs for the year to learn more about Toronto real estate:
- When is the Best Time to Sell Your Luxury Home?
- Is it Better to Buy First or Sell First?
- Diversifying Your Investment Portfolio Into Retirement
What Does 2022 Hold?
We forecast that 2022 will see similar trends with low inventory and high buyer demand resulting in steadily rising prices.
Increased immigration targets, rising interest rates, and Toronto’s continued growth and development as a world leader in technology will only make the GTA more attractive to buyers and investors.
For sellers, this means that 2022 is an excellent year to sell. For buyers, 2022 may prove to be a challenging time. However, with the team behind you, buying and selling real luxury real estate in Toronto is still possible and profitable.
This might be an excellent time to evaluate your plans for the future and obtain the right advice that will help you achieve favourable results.
Contact Armin Group today to learn more about our real estate services. We’re always happy to provide you with the best advice to help maximize your current situation and future real estate goals. Reach out here.