Real estate experts feel that Toronto’s luxury housing market will be able to endure the ongoing economic issues in 2019.
Many major cities around Canada are facing financial hardships, including Toronto. Although the city’s luxury real estate market has seen some ups and downs recently, experts believe it will be able to endure these issues. Brad Henderson, CEO of Sotheby’s International Realty Canada, stated that he feels Toronto is the “most blue chip of Canadian real estate at this point in time”.
There are plenty of reasons why Henderson predicts Toronto will be able to weather through the tough economic times. In many Canadian cities, a million dollars can get someone a high-quality home. Although, this isn’t necessarily true in Toronto. As of July 2018, the average detached home in Toronto cost approximately $1.35 million. This is $450,000 more than the rest of the GTA at that time.
Additionally, the city of Toronto has a number of other positive aspects. In 2018, Toronto had a 2.3% economic expansion and an unemployment rate of 6.2%. It is also worth noting that the city had a 2.5% population growth in 2017.
Furthermore, people should know that the economic climate doesn’t always have a major influence on the real estate market. Henderson pointed out that the economic issues in 2018 had little impact on real estate prices. “Depending on the property and the neighbourhood, they have gone from low single-digit losses to low single-digit gains,” stated Henderson.
In the latter part of 2018, 21% of million dollar listings in the Toronto area sold over the asking price. In fact, many of the homes inside of the city limits sold for over 35% more than the original listing price. This puts Toronto in a fairly comfortable position, especially when compared to other major Canadian cities like Vancouver and Calgary.
The city of Toronto has experienced some financial difficulties over the past few years. Although, many investors and homeowners can see the light at the end of the luxury real estate tunnel.