Yes, you’re reading that right. The GTA, Oakville and Hamilton-Burlington areas have all fallen by just about 60% year-over-year, according to a new report out by RE/MAX. We wanted to share a few bits and bobs with you but if you’re in these areas, go checkout the report.
“Sales of upper-end homes year to date are more in line with 2016 volumes rather than 2017, which should be distinguished as an outlier year for luxury real estate,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Region. “Any comparison will fall short of 2017 levels throughout much of the spring, but demand for luxury product is likely to improve by early summer and carry through to the remainder of the year.”
So it’s just a bit of a rough winter slump but we’ll have to see if what he says about it heating up plays out. Foreign buyer taxes and speculation are having a bit of a play while everyone here is either trying to get into the market eventually, or they’re holding on to their property for the next upswing.
I honestly think we’ll see it heat back up if the dollar here stays weak compared to the USD making us seem like a bargain. Either way we’ll keep our ear to the ground and report on what comes our way.
From the standpoint of foreign investors, the combination of a strong US dollar and undervaluation from a global perspective, Ontario is ripe for investment. In fact, the GTA and the surrounding areas have stepped into the spotlight in recent years, often dominating the top positions in world rankings, including the best city in the world by The Economist and one of top 10 most innovative cities in the world by the Melbourne-based “Innovation Cities Index.”
We can also keep in mind other areas nearby are showing signs of strength in the luxury market, but everyone is always looking for the next hot area. The Kingsway/Princess Anne Manor and Rosedale neighbourhoods has seen 10 homes sold so far this year.