Sunday, December 13, 2015

Toronto's Million Dollar Homes are HOT

The luxury market in the Greater Toronto Area was very active during the first seven months of the year. Sales of properties over $3 million increased 119 per cent year-over-year. The increase of sales at the top-end of the luxury market can be attributed to two factors.

One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that has led to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets. 

Two demographics make up the majority of buyers in Toronto’s luxury market.  One is families with older children and parents with professional jobs who have built up enough equity in their previous home to upgrade. The second are families from outside of Canada, primarily China, with school-aged children. These buyers typically choose four or five-bedroom homes and are strongly influenced by proximity to good schools.

Average sales prices now exceed $600,000 for a detached home.  Our year over year gain for 2015 is expected to be at or near 10%

Canada Mortgage and housing has introduced new rules for additional down payments requiring 10% down after the $500k threshold.   I doubt these measures will have any effect to slow sales.

Rates continue sub inflation
Inventory Remains Low
Immigration for Jobs and Safe Haven Continues

Are you Selling or Buying?  Come see what's new!

What do you think?

NEW Improved Protecting Condominium Owners Act now in place

With almost 600,000 condominium units in the Province of Ontario and more coming; the Condominium Act was slated for review.

I disagree with an additional layer of government that is ruled by Tribunals that require paralegal representation and will require funding [ we pay ] as compared to legal redress. This also will cure many self managed Condo buildings that run rogue over residents.

However the Top Talking points are;

A new Condominium Authority will be established in 2015 to prevent common disputes and serve as a cheaper alternative than the court system to resolve problems. It will be an independent, not-for-profit corporation self-funded by a $1-per-unit monthly fee and will fall under the oversight of the provincial auditor general.

There will be mandatory licensing and education requirements for condominium managers. The new administrative authority is designed to regulate condo managers and property management companies through a compulsory licensing system and a code of ethics.

Governance requirements for those on condo boards will include training of directors. Boards would no longer have to pass a by-law in order to hold a conference call or virtual meeting online. And they would be required to update owners regularly on insurance and any legal proceedings.

There will be clearer rules to protect owners from sticker-shock costs after purchasing newly built units. Developers will be required give buyers a guide to condominium living at the time of sale and the Ontario new home warranty will soon also apply to some condo conversion projects in older buildings.

Improved regulation for condo corporations should help curb financial mismanagement and organizational bungling and reduce fraud. It would forbid condo corporations from finalizing some maintenance contracts unless they have sought competing bids for work and give owners more information about their corporation’s finances and clarify rules about reserve funds.

The Protecting Condominium Owners Act 2015  Bill 106 
is available here

Better or Worse Its here

What do you think?