While many people in Toronto are struggling to afford the monstrously inflated prices of basic groceries and rent, luxury property sales in the city (and the country at large) are somehow booming.

Unfazed by the high cost of living, uber-wealthy purchasers have spawned double-digit jumps in sales activity in markets across Canada, including in the GTA, where 14.4 per cent more houses over the $3 million mark have sold so far this year compared to the same time in 2023.

This is according to a new report from RE/MAX Canada, which says that even with the foreign buyer ban, inflation and high tax rates, high-end sales are on the rise in virtually every major city in Canada.

The ultra-rich are back to buying up mansions no one else can afford in Toronto https://t.co/fAOp5R6Qsc

— blogTO (@blogTO) January 18, 2024

"Despite a disconnect between buyers looking for deals and sellers' price expectations, almost all regions reported a strong start to the year.
Ninety per cent of markets experienced an increase in luxury sales, with more than two-thirds recording double-digit growth," the report, released Tuesday, reads.

It adds that the upswing in sales volumes for these types of properties "signals a return to overall health in the country's major centres," with "stronger home-buying activity at lower price points pushing sales into the upper end."

These are the Toronto neighbourhoods that have the most luxury homes https://t.co/MnlVxBb2L7 #Toronto #TorontoRealEstate #RealEstate

— blogTO (@blogTO) February 25, 2021

While traditionally cheaper cities like Saskatoon, Montreal, Calgary and Edmonton saw the largest boost in sales volumes for the most expensive properties (57.1 per cent, 55.6 per cent, 52 per cent and 32 per cent, respectively), Vancouver, known for its exorbitant real estate, saw only a 2.6 per cent rise in luxury sales between 2023 and 2024.

Ottawa was the only locale where the interest in higher-end properties waned, with 7.7 per cent fewer sales so far this year.

Almost all markets in Canada are seeing more ultra-rich home buyers. Chart from RE/MAX.

"Some luxury buyers looking to expand their purchasing power are moving over into markets such as London (drawing buyers from the GTA), Halifax, Calgary, Edmonton and Saskatoon (drawing buyers from Ontario and B.C.)," RE/MAX's experts write.

This is due to not only lower overall pricing and the ability to get more bang for your buck, but also cheaper taxes — Toronto and Ontario have the highest in Canada, with land transfer taxes of approximately $183,000 on a $4 million home, which is double what they would be for the same home in Vancouver.

Those looking at luxury properties in Toronto so far this year tend to be skewing toward those above the $5 million mark, though many of the extremely expensive homes (above $10 million) available are still sitting on the market from last year.

There's a new TV show about Toronto's obnoxiously luxurious homes https://t.co/yJ2sCzYV1l

— blogTO (@blogTO) March 27, 2024

"Interest rates remain the greatest roadblock to homeownership at present, with many waiting on the sidelines for rate cuts. It's anticipated that once rates start to fall, Toronto's housing market will be exceptionally robust, with pent-up demand the driving force behind heated home-buying activity," RE/MAX writes.