Foreign Buyers Expected to Boost Toronto Home Market As Vancouver Cools

According to Sotheby's International Realty Canada, as the real estate market in Vancouver cools off, Toronto is expected to lead Canada in sales of homes worth over $1 million.

The company says sales of single-family homes worth a million dollars and over a million dollars has declined in Vancouver. Sales of single-family homes in the $1 million and $1 million plus price range has declined by 30 per cent during the month of July and by 65 per cent in August in comparison to a year ago.

In July, sales of luxury homes in Vancouver (homes over $4 million) dropped by 33 per cent on a year-over-year basis. During the month of August, luxury homes declined by 46 per cent on a year-over-year basis. Sales of condominium units also dropped drastically in July and August.

Uncertainty exists in the market as the B.C. provincial government implemented the 15 per cent foreign buyer tax. This tax is expected to moderate sales activity during the fall season.

Sotheby's International Realty Canada said the foreign buyer tax in Vancouver could trigger more interest in the luxury home market in the GTA. The firm said the Greater Toronto area had a more active summer than expected.

Year-over-year sales of single-family homes that cost over $1 million in July and August were up by 83 per cent in the Greater Toronto Area and by 55 per cent in the city of Toronto.

Condo sales in the same price range rose 89 per cent in the GTA and 86 per cent in the City of Toronto.

According to Sotheby's International Realty Canada, the high-end market in the GTA is anticipated to remain active through the fall due to local demand and increasing interest from foreign buyers.

Reference:

CBC News

http://www.cbc.ca/…/sothebys-luxury-homes-toronto-vancouver…