Real estate in Toronto is always a hot topic, but what’s scorching hot right now is the luxury condo market. In a new report from Remax, an 86 percent increase in sales of condos sold between $1-2 million was found in the first half of 2017. The period in 2017 saw 715 units sold, compared to 384 the year before. Sales of luxury houses have also remained strong. Detached properties selling for more than $3 million saw an increase of 55 percent during the period in question. In the first half of 2016, 489 houses over $3 million sold, with 760 in 2017. While speculation about the Fair Housing Plan affecting the market is rumbling, the report states it is still a new factor in the housing market, which has yet to adjust. Additionally, the "long-term impact has yet to be determined." The Fair Housing Plan is a set of rules put in place to keep housing affordable in the province. Some of the controls include the Non-Resident Speculation Tax, which aims to curb sales of homes to foreign buyers, rent increase prevention, and policies to increase the supply of available housing. Vancouver, which often accompanies Toronto in conversations about expensive housing markets, actually saw overall decreases in the sales of luxury detached houses this year. Toronto saw an increase in each price range for detached homes, while Vancouver sales fell in every category. Remax attributes some of the increases in the GTA to a demand for luxury condos that exceeds supply. The organization also says that overall price increases for the units and baby boomers downsizing from homes to condos may be contributing to sales numbers. The increasing sales numbers for luxury homes are expected to continue through the second half of 2017, Remax says in the report.
by Michael Ott via blogTO