T
he Greater Toronto Area's (GTA) luxury market saw a significant surge in activity towards the end of last year, with sales of homes valued over $3 million increasing by 40.5% compared to the same period in 2023. According to Re/Max Canada, this growth was driven by the Bank of Canada's recent rate cuts, which helped spark demand for high-end properties. In the fourth quarter of 2024, 364 homes priced between $3 million and $5 million were sold, marking a notable increase from previous years.

    Pricier luxury homes also saw sales pick up in the fourth quarter, with sales of homes valued between $5 million and $7.5 million rising by 58.5% annually, and sales of homes valued between $7.5 million and $10 million climbing by 41.2% year-over-year. Re/Max Canada president Christopher Alexander attributes this growth to the central bank's policy rate cuts, which have helped alleviate pent-up demand in the luxury market.

    The uptick in home-buying activity is expected to set the stage for a strong luxury market in 2025, with affluent buyers gaining confidence to move forward once again. While supply remains a concern, Re/Max expects that the increase in buyers will offset the additional listings coming on stream. As a result, the real estate firm predicts that the national average residential price will increase by five per cent over the course of this year, driven by growing optimism about the housing market among Canadians.