This site uses cookies.

The types of cookies we use, and the way we use them, are explained in our Privacy Policy. By clicking "Accept" or continuing to use our site, you agree to our use of Cookies. More information

August 20th, 2019 
Chaim Talpalar

Sales Representative

Visit  blog
Visit me on LinkedIn
Personal Information
Property Search
Free Reports
Market Insight
Chaim's Newsletters
Market Watch
Segal Custom Builders
Selling Home
Buying Home
Buyer & Seller Resources
Toronto Links
Real Estate Info Center
Client Reports
print version

The Rising Costs of Toronto’s Real Estate 

Not so long ago luxury real estate in Toronto started at $1 million. Today, a prestigious address with high-end finished & fittings will cost more than twice as much.

With the average Toronto detached home selling for $1.26 million in June, house hunters seeking real luxury are actually buying well beyond the $2 million range, said managing broker of Sotheby’s International Realty Canada.

Even buyers bidding on homes over $2 million are subject to the heartbreak of Toronto’s bidding wars & bully offers. The number of homes that sold for over $1 million in Toronto during the first 6 months of this year, actually exceeded the only hotter Canadian market in Vancouver.  The strongest sales volume increase in the GTA was in the $4 million plus category. Although it accounts for a relatively small number of sales, the category increased 81% in the first 6 months of this year. That is 134 super luxury homes between January & June, compared to 74 in the same period last year, including detached & attached homes as well as condos.

 Sales of detached single family homes that cost over $4 million were up 79% year over year. It’s not a matter of buyers in the lower price category being pushed past the $2 million mark.  If a buyer can’t afford the luxury they want in the city they will move further out or find an alternative such as a high end condo.

Simply but there are people that have a lot of money & consumer confidence is high. People today are used to living well because we’ve had such a good economy for so long & they can afford it. There are a lot of people who are getting these huge inheritances. They have their own money plus they have money trickled down from family inheritances. 

Foreign investment & a relatively low Canadian dollar are expected to continue driving the scorching Toronto & Vancouver property scenes. This, along with the persistence of low interest rates & continued local consumer confidence & activity, will drive the $1 million plus real estate market into the second half of 2016.

If we had more inventory the industry would feel a lot better about people being able to purchase homes comfortably. It doesn’t look like we’re going to get a lot on the market going into the fall. For every house on the market you’ve got 10 buyers.

Source: MetroNews – July 2016

Please feel free to contact me regarding this article or about any real estate needs or questions that you may have. Call me at  416-804-0991 (client line) or 416-441-2888 ext 266 (office) or email for more information.

View more services  
adminlistingsprivacy policycontactsite map