Toronto is world leader for luxury real estate
A new report shows that Toronto is the one city with the hottest growth in luxury real estate. Christies International’s study also revealed that the new benchmark for high-end homes is U$100 million with a record ten properties currently listed across the US at or above the 9-digit price. Toronto ranks tenth overall on Christies’ luxury index it has seen the hottest pace of growth with a 37 per cent increase in 2014; in 2013 it saw just 4 per cent. Low supply has kept that increase lower than it could have been according to experts and has also pushed prices higher; larger homes in desirable neighbourhoods are touching $4 million and even more modest homes are in the $1-2 million range. Toronto also tops the league for the fastest selling times with high end homes averaging just 31 days on the market.
Oversupply warning in Toronto, Vancouver condo market
Although deemed to be ‘low-risk’ in the CMHC’s latest assessment of the property market there is a warning over one sector of Toronto and Vancouver’s real estate. Capital Economic’s David Madani says that oversupply of condos in the two cities could reach dangerously high levels. He told CanadianBusiness.com that builders are giving incentives to buyers but they may not be enough of a draw for investors who may “move off to the sidelines” if prices stall. In the first quarter of this year there was a 42 per cent increase in new condo supply according to Urbanation and some experts are predicting a sharp drop in prices is demand does not match supply.
Halifax home sales down but match 2014 levels
Home sales in Halifax were lower in the first quarter of this year but held roughly to their 2014 level. CMHC figures show that 899 homes sold in the area compared to 915 in the same period last year. Alex MacDonald the agency’s regional economist said that the number was only slightly behind last year despite the harsh winter. Sales held up due to lower interest rates and a 1.3 increase in population. MacDonald told the Chronicle Herald that prices have increased by 1.6 per cent as inventory reduces.