Toronto’s Healthy Luxury Real Estate Market Predicted to Continue on to 2017
Thanks to population growth, tightening up inventory, and lower interest rates, the city of Toronto has seen housing prices increase rapidly over the past four years. This is also thanks to steady immigration. In fact, just recently in December, the sales prices for housing was up by 20 percent higher than the previous year.
The Canadian city has watched housing prices skyrocket over the last four years, thanks to tightening inventory, low interest rates and population growth (including steady immigration). In December, the average sales price was 20% higher than a year earlier, and Toronto saw the strongest sales gains of any Canadian metropolitan area in 2016, according to the Toronto Real Estate Board (TREB).
Meanwhile, the luxury market saw prices increase around 32% in 2016, says Richard Silver, senior vice president of sales at Sotheby’s Realty International Canada.
“We have a lack of inventory, and like a lot of cities, like New York and Chicago, there’s only so much space for new developments,” Mr. Silver said. “There are a lot more people coming into the market than there are people leaving the market.”
To put the growth in perspective, had the Canadian rapper held onto his 3,600-square-foot, three-bedroom bachelor pad at the One St. Thomas condominium until today, he might have made another half-million or more on the property. Prices in the swanky building by New York City-based architect Robert A.M. Stern now hover around C$1,200 per square foot, according to data from 2016 sales. read more… mansionglobal.com