The $1-million price range isn’t so exclusive any longer, as a record number of homes sold for at least that much and a lot more in the Greater Toronto Area last year.
In the GTA, 19,692 properties sold last year for $1-million or higher, a 77 -per-cent surge compared against 2015, according to the Sotheby’s analysis.
“The GTA’s market strength was driven by several factors – insatiable consumer demand, tolerating confidence in real estate as a secure and realizing asset, low interest rates and a low Canadian dollar,” told Sotheby’s, which targets high-end sales. “A chronic shortfall of listings relative to market requirements was a key factor to rapidly rising home prices.”
Within the City of Toronto, 7,799 homes sold last year in the $1-million-plus category in 2016, up 44 per cent compared to 2015.
The Toronto Real Estate Board said last week that foreign buying played a minor role in the GTA. An estimated 4.9 per cent of GTA transactions involved a foreign purchaser, based on an Ipso’s survey in October of members of the board.
Brad Henderson, of Sotheby’s in Canada, said he realises the GTA’s momentum in 2016 will be carrying into 2017, while the Vancouver area is headed for a slow first half of 2017.
In October, 2016, Canada Mortgage and Housing Corp. cautioned about high prices in and around Vancouver and Toronto.
Of the total number of $ 1-million-plus properties that sold last year, 89 per cent were single-family homes in the GTA and 64 per cent in Vancouver.
Sotheby’s labels its analysis as the “top-tier real estate report, “though qualifying for the top category requires reaching the $4 million level. Last year in the City of Toronto, there were 209 sales at $4 million or higher, accounting for 2.7 per cent of the sales of that market’s total number of sales for at least $1 million, compared against 573 transactions (12.7 per cent) in the City of Vancouver.
In Vancouver in November, 2016, detached homes sold for an average price of $3.29 million in the Kerrisdale neighbourhood, $3.74 million in Point Grey and $7.72 -million in Shaughnessy. The median price for condos sold in December, 2016, hit $2.3 -million in Vancouver’s downtown Coal Harbour area.
In the GTA in November, 2016, the average price for single-family homes sold reached $2.37 million in the Lawrence Park neighbourhood, $2.45 million in Rosedale-Moore Park, $2.96 million in Forest Hill and $4.93 -million for an area that encompasses the Bridle Path, Sunnybrook and York Mills.
Source: Globe And Mail
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