Demand for GTA luxury properties falls drastically

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The millionaires and billionaires seem to be holding on to their money and this is evident in the property market where homes in the $ 3 million-plus range are barely selling. Sales have fallen as 60 per cent from the fevered activity of early 2017, according to a Re/MAX report.

Only 76 luxury homes, including condos, sold in the Toronto area in January and February this year, compared to 180 in the same period last year and 79 in 2016 — a better comparator than last year’s hyperactive property market, says the company.

The biggest decline was in York Region, where there were only eight sales, compared to 41 last year.

While resale housing prices were down 12.4 per cent overall in February, luxury homes were selling for more this year. The average transaction in the $3 million-plus category was about $4.2 million, compared to $4.1 million last year.

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It is hard to imagine or believe that Toronto is still one of the most affordable world cities. Condo prices per square foot is $791, compared to Vancouver, which is at $1,200 a foot, or Hong Kong, which is $3,200 a foot and New York, $1,600 a foot.

Luxury condos and townhouses continue to be hot sellers in high-end real estate feeding the downsizing market. Eight condos sold for $3 million or more in the first two months of this year, up from five last year, with limited supply helping push up prices, said Re/MAX.

Demand for luxury condos is also evident in the rental market, where properties leasing for $4,000 to $6,000 a month are being snapped up within 30 days.

Luxury homes in Hamilton-Burlington area start at about $1 million.

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Re/MAX expects that the high price of Toronto real estate will continue to drive buyers west. It notes that prices in Burlington can be 20 to 30 per cent lower than those in Oakville, and less still than in the City of Toronto.

Meanwhile brokers, buyers and sellers are warily eyeing the trends going into Spring and then the traditionally busy time in summer when home sales spike dramatically. This year few experts are willing to make predictions as to how low or how much higher the market will go. – CINEWS

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