Toronto has been the fastest growing luxury real estate market in the world. According to a new report, conducted by Christie’s International Real Estate, Toronto was ranked the world’s hottest luxury real estate market.
The demand for mega-mansions and penthouses has grown substantially as wealthy buyers search for alternative investments such as collectible real estate. Toronto ranked 10th on the report’s luxury index overall but ranked first on the luxury thermometer. The city saw a 37 percent increase in luxury home sales in 2014, an incredible number especially when compared to the 4 percent mark a year before.
A large influence in the recent trends within the Toronto real estate market has been the low supply of homes available. This has pushed relatively average homes into the $1 – $2 million range and homes in more desirable neighbourhoods into the $2 – $4 million range. Furthermore, the housing shortage has pushed many luxury condo prices above the $1 million threshold.
The houses and condos on the market are moving quickly, with prime properties finding a buyer within 31 days after listing on average. The fact that houses are moving quickly can have an influence on these soaring prices as home buyers do not have as much room to bargain because if they don’t act quickly, someone else will.
The luxury real estate market is booming as affluent investors continue to look to purchase unique and incredible real estate as a collectors items. Demand is growing among affluent Americans and Europeans as well as billionaires from unstable economies such as Russia and Middle Eastern countries who are looking for property investments to showcase in their portfolios. In addition, an influx of buyers from China has resulted following the country lifting a ban on investing overseas.
“People want trophy homes,” according to Eyal Ofer, a Monaco-based shipping and real estate magnate. “They’re a scarce commodity. And they’re better than gold because you can boast about it.”
The average starting price for a luxury home, in the areas Christie’s study took place, was $2 million. They defined luxury homes as having a combination of location, such as a prominent street address, and amenities such as privacy, urban conveniences or collectible architectural quality.
from Anthony S Casey and Real Estate http://ift.tt/1IOvmAI