Looking into what we consider “luxury homes” in 2024 I find it fascinating to review what is luxury today and what was luxury just a few years ago.

Let’s revisit the past.

It was February 2022, and we were in the midst of a heated market. Coming out of the pandemic, people were taking advantage of low mortgage rates and spending more time at home. Housing was popular. This resulted in bidding wars on almost every home. I placed a brick bungalow on the market that was being sold after an elderly woman passed away. The home was purchased by the owner in 1965 and she had done very little to upgrade the home. It had the original kitchen cupboards, flooring and hardware. The bathroom was original, and windows were the old single pane slider type. The basement had never been finished. The home sold with 27 offers for $1,056,000.

This past weekend a 2,500 sq ft home in the Grandview and Taunton area sold. The home was a 4 + 1 bedroom 2 storey home with hardwood flooring, upgraded kitchen cabinets, 2 fully renovated baths with quartz and tempered glass showers and a nice backyard deck with a hot tub. The home sold for $1,050,000.

The same selling prices with one being a “family style executive home with the other home being a starter or investment property.

In 2022 the home that sold in the Grandview area would have sold in the $1,800,000 – $2,000,000 range, so the drop in values is typical for what has happened in our local marketplace. The bungalow mentioned would be worth in the range of $550,000 in todays market. Luxury in 2024 can be found in the $2,000,000 + ranges. A good example is a newer bungalow sold on the border of Courtice and Oshawa for $2,450,000. This home exuded luxury – 3 car garage, a kitchen straight out of a magazine, a finished walkout basement with over 5,000 feet of finished space.

Luxury homes in south Durham are priced like this

Whitby – $3,000,000 – $5,000,000.

Oshawa – $2,000,000 – 3,000,000.

Clarington – $2,500,000 – $4,000,000.

Many of the homes sold in these price ranges are to Buyers who do not need mortgages and for those who have a considerable amount of equity to put down yet still need a mortgage, the mortgage rates cause many would be Buyers to hold off in many cases. In 2022 buying a $2,000,000 home with a $1,000,000 downpayment made for manageable monthly payments of about $4,000/mth. With the current rates that same mortgage would be over $5,800/mth.

We are at a crossroads where luxury has never been more affordable given the drop in values, however it is a “double edge sword” in that the values are lower with carrying costs dramatically higher. My thoughts on our market are that if you are interested in upgrading to a luxury property, now is the time to do it as I feel 5 years into the future the values will be much higher and the mortgage rates will drop. Savvy Buyers know that their investment will only grow with time along with the fact that living in a luxury property offers a beautiful tranquil lifestyle. If we see modest value increases over the next 5 years of 5% a year, that luxury home you purchased for $2,750,000 today would be worth about $3.5 million. Something to think about.

If you are interested in exploring the value of your current home and the opportunity to move up to a luxury property I can be reached at lindsay@buyselllove.ca or 905-743-5555

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