22 Mar Luxury Home Sales in Canada Continue Record Pace
Toronto and Vancouver Sizzling Hot Realty Markets
Although the US markets such as San Francisco, Los Angeles, Charlotte, and Miami are glowing brighter these days, Toronto and Vancouver are actually the hottest markets in the world right now. The Forecast for housing sales and combined with higher condo and home prices means realtors can raise their earnings considerably.
Both Toronto and Vancouver are keeping pace for new sales records this year. And it’s a great time to be selling a $1Million+ home in these 2 cities. Excellent for those who have positioned themselves to sell these properties. Take a look at the sales Jason Soprovich is enjoying in Vancouver.
US and foreign investors are keeping their eye on the Canadian market as the Canadian loonie stays down at 75 cents US. There’s still time to get onboard the rising tide.
The globe and mail reports that in the first two months of the year sales of Vancouver homes valued at more than $1-million increased 23 % year over year. Toronto luxury homes were up an unbelievable 63% year over year. Overall in the GTA, home prices rose to about $720,000 on average.
Depicted at right are the world rankings of property prices around the world. Knight Frank’s most recent world wealth report shows “prime” property prices in Canada are rising at a rate that’s 4 to 14 times faster than the average of the rest of the world.
“Luxury home sales in Toronto and Vancouver will continue to defy gravity this spring. Both markets have the potential for significant gains and we expect heightened demand and insufficient inventory to drive price escalation and sellers’ market conditions.” — from a statement by Brad Henderson, president and CEO of Sotheby’s International Realty Canada, reported by the Globe and Mail.
TREB reported 7,621 home sales in February, up from 6,294 — a rise of 21%. That’s despite the fact supply is actually very limited. More homes are sneaking above the $1 million mark thus giving them the tag of luxury homes, when in fact, some of them aren’t really luxury homes at all. Is it time to refer to luxury homes as those above $4 Million? The forecast for 2017 sales and new construction are positive. It’s been record growth recently.
Sales of detached homes rose by 37% year over year and the average price of a detached home in Vancouver has also risen 37% to $1.3 million. Most luxury home sales in Vancouver are from 2 to 5 Million dollars. New listings in Greater Vancouver increased 7% so clearly homeowners are starting to get the itch to sell. Ironically, the total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 7,299, a 38.7% drop compared to February 2015.
It’s common knowledge that few Vancouverites can afford to buy a home. We have to ask who buyers are now in both Vancouver and Toronto? Clearly, Millennials can only afford lower end condos in most areas of greater Toronto and Vancouver. The desperation of the market has increased the use of shadow flipping, which the BC premier says she intends to clamp down on. However, she also stated she will not do anything to affect homeowner’s equity– clearly signalling a “hands off” attitude that will appeal to luxury home and condo investors around the world.
As the white line above shows, Vancouver condos still haven’t taken off in price. Maybe this will be your investment opportunity? (Call me if you need a tenant — me. Don’t let that luxury condo sit empty when I could be minding it for you:)
With migration into Vancouver on the rise, the government will have to act fast to promote new home development. With low interest rates, investors and developers are eager to get into these fantastic market opportunites.
Luxury Home Realtors Having a Great Time
Vancouver area luxury real estate agents are enjoying a rare period of exceptional sales and income. It could be another record year in 2016 for Sutton Group West Coast Realty who are clearly enjoying the fruits of being top dog in the current residential and commercial property boom.
Luxury home realtors may have to shift their marketing to the International investor and buying audience of Saudis, Chinese, Hong Kong, Australian, US and European buyers whose currency exchange rates given them a decided boost in purchasing power. Asian investors are buying globally, but nowhere do they feel more comfortable and welcomed as in Vancouver.
Additional Luxury Real Estate posts:
What makes a better luxury real estate agent?
Are the most beautiful condos in Vancouver lifting the market even more?
What’s up in Realtor marketing today?
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