Toronto has surpassed Vancouver as Canada’s top real estate market based on average home prices and pace of transactions. Vancouver’s sales numbers began declining in August in a trend expected to continue through the fall months.
The British Columbia government implemented two tax measures now significantly impacting Vancouver’s slowing luxury market. In February, super-luxury properties were levied an extra tax on the additional purchase price over $2 million. A new 15 per cent tax on foreign buyers purchasing property in Vancouver went into effect on August 2. With the two new levies, the sales pace began to slow in July.
Buyers deterred from B.C. but still highly interested in Canadian real estate due to our economic and political stability are bound to wind up in Toronto. This is evident because Toronto’s sales remained strong at the same time Vancouver’s slowed, with GTA sales up 18 per cent since 2015.
The increased demand for luxury real estate is creating a highly competitive market even in the super-luxury segment. In July and August, 47 homes sold in the $4-million plus bracket, a 74.1 per cent increase over the same time last year. One recent sale of a $3.7-million 4-bedroom 6-bathroom detached home in Willowdale sold in three days at $132,000 over list price.
Home buyers and sellers can expect Toronto real estate to remain strong with average prices showing year-over-year growth and increasing number of sales in the immediate coming months. New construction projects are slated to come on-market next year to meet the high demand for Toronto housing, but it is doubtful the number of units will have a significant impact on average prices.
Barry Cohen’s experience with Toronto luxury real estate is essential for local and foreign buyers. Consult with Barry before searching in the competitive market.