Photo: James Bombales

The Toronto housing market has been slowly warming up for months, and its luxury real estate market is no exception. In fact, this summer, sales of residential property over $1 million and $4 million jumped 19 per cent and 34 per cent year-over-year, respectively.

“In spite of seasonal tendencies for real estate activity to slow over the summer, top-tier sales activity strengthened this July and August, reflecting a shift towards renewed seller, buyer and investor engagement, and a transition into an active fall market,” reads a new report from Sotheby’s International Realty Canada, released today.

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The city’s high-end condo market saw the biggest gains in July and August, with sales of properties over $1 million increasing by 28 per cent year-over-year.

“Last spring we saw the Toronto market pullback after the introduction of the Ontario government’s Fair Housing Plan,” Sotheby’s president and CEO Brad Henderson tells Livabl. “But the market is starting to come back, and we are confident that it will continue to be active heading into the fall season, and for the rest of the year.”

Strong activity will be maintained by what Sotheby’s calls “healthy levels of fresh inventory,” and a provincial economy projected to advance by 2.2 per cent in the coming quarter.

“Consumer confidence and strong economic fundamentals are expected to anchor top-tier market health to the end of the year,” reads the report.

Not doing as well? Vancouver, which saw its top-tier real estate market decelerate over the summer, as the housing market continues to adjust to rising interest rates and new housing policy introduced earlier this year.

Activity across the city’s $1 million property market fell 24 per cent year-over-year during July and August, while luxury sales over $4 million dropped 33 per cent.

“The Vancouver market continues to suffer from a lack of activity brought on by provincial housing policy,” says Henderson. “Heading into the fall season it is unlikely that will change significantly, but the market should eventually adjust to the policy changes, as the demand for luxury property is still there.”

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