Toronto’s real estate market is driven by basic economics: supply and demand. For an extended period of time, Toronto’s rapid increase in housing costs has been directly influenced by low supply and increasing demand from local and foreign investors.
With the average days on market hovering around two weeks, homebuyers are searching for properties in a highly competitive market. The average detached home cost $1.26 million in June, setting a new bar for luxury in Toronto real estate. The combination of ever-increasing home values have led market officials to warn of a potential bubble burst and that drastic measures are needed to slow Toronto’s real estate market.
The truth is developers have responded to Toronto’s supply and demand problem with high-rise residential construction projects aimed to address the housing dilemma. New construction in the downtown core is reporting dramatic growth. In the first six months of 2016, the city received 28 high-rise development applications. The previous year developers submitted 59 applications.
Expect downtown Toronto’s skyline will change dramatically in the coming years in the move to accommodate the growing interest in Toronto living. The projects address all market segments, with mixed-use buildings, rental units, residential and luxury condominiums. The dramatic increase in available units will help self-regulate Toronto’s market.
Toronto remains a top-ranked luxury real estate market internationally and the $1-million plus market is healthy. Over the last six months, the luxury market has witnessed strong sales volumes. Closed sales in the $4-million and higher segment grew 79 per cent over the previous year.
While detached residential properties are in short supply prospective homebuyers can still find the right home at the right price. Experienced REALTORS can help families relocating and foreign investors find the luxury home that best suits their needs.
Whether buying or selling luxury real estate, trust the Barry Cohen group to meet your real estate needs.