This year’s Christie’s International Real Estate Luxury Defined whitepaper shows that while the luxury homes market in Toronto appears to be levelling off, Muskoka has enjoyed an impressive increase of 16% in luxury property sales in 2017.
LUXURY DEFINED 2017 HIGHLIGHTS from Chestnut Park CEO Chris Kapches:
In Toronto, 2017 began in the most frenzied fashion possible. In January, February, March and April, sale prices were increasing in an unsustainable fashion, topping out at 33 percent on a year-on-year basis in March. On April 20th, everything changed. The government announced the Ontario Fair Housing Plan. Amongst other measures, it imposed a 15 percent tax on residential purchases by foreign buyers. Technically this measure should have had an insignificant effect on the market – after all only 4 percent of all homes were purchased by foreigners. But the implementation of the tax acted as a psychological wake-up call, causing buyers to stop, look at the amounts they were paying for properties, and wait to see what the impact of the tax would be on sales and sale prices. By May sales of residential properties had declined by more than 20 percent.
“Despite record low inventory, Ontario’s ‘weekender’ market of
the Muskokas ranks second on the list, buoyed by an influx of
‘lifestyle arbitrage’ baby boomer buyers from Toronto.
“Inventory for the recreational marketplace as a whole has
declined by almost 50 percent in two years,” says Chris
Kapches of Chestnut Park Real Estate. “It is not surprising
that declining inventories lead to declining sales, and concomitantly
to rising average sale prices. Reduced inventory levels
continue to put pressure on buyers, as they are being forced to
pay for more desirable recreational properties.”
–Chris Kapches, Chesnut Park Real Estate, Toronto
DOWNLOAD FULL LUXURY DEFINED REPORT HERE
Source: Chestnut Park Blog