The Toronto market was one of the hottest in the country. Buyers vied for properties in an environment of acutely constrained inventory.
The social and economic factors that have influenced the Toronto market in recent years remain unchanged, so it is reasonable to expect we will see continued price appreciation in Toronto and surrounding areas in 2015.
Demand both here and in Vancouver for higher-end homes is largely being driven by downsizing baby boomers and the wealthy, including foreign buyers, looking to Canada’s two biggest cities as stable, safe havens, said McCredie in an interview. In fact, some foreign investors are increasingly looking to Toronto because it’s still more affordable than Vancouver, he added.
The real story maybe more in the GTA than anywhere else in Canada, is that the baby boomer is largely driving this market right now. They have a lot of money, they are inheriting a lot of money and they are giving away a lot of money.
Sales of $2 million to $4 million homes were up 38% over 2013 and $4 million plus sales were up 10%, says Sotherby’s.
The number of Toronto houses and condos that sold for over $1 million in 2014 surged by 38% over 201 as “robust consumer demand” and a shortage of listings continued to drive house prices skyward.
There are about 270,000 high-net worth families in Canada and there are more of them driving this marketing than every before, especially in the GTA.
Some 7,527 condos and single family homes (detached, semis and townhomes) sold for over $1million in 2014 across the GTA. That’s a relatively small portion of the more than 90,000 homes that changed hands in the GTA in 2014.
Toronto joined the list of the top 10 most expensive cities in the world. An updated Swiss wealth management firm suggests the city jumped around 20 spots from later year, ranking either among 73 cities surveyed. Toronto ranked higher than London, Singapore and even Paris. The survey also found employees in the Canadian cities enjoy relatively high purchasing power from their hourly wages with Toronto ranking 14th.
Real Estate is increasingly driving the Canadian economy. Stats Can reported the country’s real estate industry has contributed to national GDP growth since 2000 more than the energy, manufacturing and healthcare industries combined.
The real estate sector – buyer and selling property, and leasing and renting property – contributed almost $207.7 billion to Canada’s GDP in the month of August, representing 12.8% of the total national GDP. That contribution rose a whopping 35.4% over the last 10 years.
It’s not unrealistic or surprising, and the with the lack of available homes and low interest rates and the net migration…prices will increase across the board. A new study says that we will need another 4.5 million homes over the next three decades.