Pamela Vasiliu
Sales Representative
pvasiliu@remax.net

RE/MAX Professionals Inc.
Brokerage
Independently owned and operated.

Date: Wednesday October the 18th, 2017 
416-236-1241

 

   

Foreign Investors boost luxury real estate market

February 16, 2016 - Updated: February 16, 2016

Mild weather and no lack of motivated buyers maintained an active real estate market in the GTA throughout December.

The Toronto Real Estate Board reported last week that sales in the GTA rose 9.2 per cent in December compared with December, 2014. The average price jumped 9.5 per cent to $609,110 in December from $556,259 in the same month a year earlier.

December is bonus time for many players in financial markets, and some buyers fell there are better deals to be had at year's end.

The drop in the Canadian dollar against the U.S. currency makes purchasing in this country more attractive to foreign investors. Which will continue to drive the market in 2016

The overseas investors view Canada as a country with a stable government and a solid banking system. Investors are drawn from a variety of countries, including China, India, Russia and Iran.

A recent move by Royal Bank of Canada to raise borrowing costs on some of its fixed-rate mortgages may not cool the market, because rates will still be low. 

The timing of new listings in the spring market will be interesting this year because the provincial Family Day holiday is followed by public- and private-school spring breaks and then the Easter holiday weekend at the end of March. 

The unseasonably mild temperatures in December and parts of January is helping to keep buyers and sellers thinking about real estate. The weather is in our favour.

In years past, the average price in the 416 area code typically rose about 11.5 per cent from January to an annual peak in May. However, in 2015, the gap widened, with the average price jumping 17.5 per cent over the period.

A phenomenon that hinders sellers gives buyers an edge, of course, and house hunters may find a bargain in the first weeks of the year. It's a good idea for Buyers to get out and uy in January.

The crowd of buyers is thinner in January because many consumers are trying to pay down debt left over from the holidays. Meanwhile, since those who sell in January tend to be highly motivated, they may be more willing to negotiate on price.

Prospective buyers often wait until the traditional spring blitz, which means that GTA real estate typically tips over to a brief buyer’s market and bidding wars are less common.


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