Luxury home sales take a huge dive in Toronto
Toronto's market for high-end homes continues to struggle as we move into the second quarter of 2018.
A new report from the luxury property broker Sotheby's International Canada shows that houses worth more than $4 million are selling like cold cakes. As in, the opposite of hot cakes. As in, they're not selling very well at all.
January and February marked a 55 per cent year-over-year decline in both the $1-million-plus and $4-million-plus categories locally, according to Sotheby's.
Of course, the beginning of last year was atypically hot.
Sales of luxury homes were booming during the first half of 2017, according to a previous Sotheby's report, but tapered off by a whopping 56 per cent over the second half of the year.
Knowing this, the findings for January and February show more of a stagnation than a dramatic plunge – but a 55 per cent year-over-year drop is still pretty jarring, especially in the typically stable luxury market.
Sotheby's Canada CEO Brad Henderson says not to worry, calling the steep decline a "statistical aberration."
He predicts that sales numbers and prices will rise again in the City of Toronto later this season, based on a slight increase in the average home price he's seen already this year.
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