The above graph illustrates the lightening speed in which homes in Toronto are selling. The worldwide luxury homes average days on market 195 and Toronto's luxury homes days on market 2015 is an impressive mere 28 days.
This report named Canada and New Zealand as leading examples of high-performing luxury housing markets that have instituted legislative changes for international buyers but continue to welcome overseas funds for housing.
Canada’s Immigrant Investor Program, which allowed foreigners to obtain residency by loaning C$800,000 interest-free to the vernment for five years, was cancelled in February 2014. Of the 59,000 pending applications, 76 percent were from mainland Chinese investors. The move did not dampen the country’s luxury housing markets if Toronto is any indication. The city posted 25 straight months of sales growth and surpassed the C$1 million average price mark for the first time last September. Affluent overseas buyers, many from China, continue to be drawn by Toronto's abundance of new construction and home prices that are lower than many other global economic hubs. Overall household formation supported price increases and sales pace with over 100,000 new households being formed in 2015 and 2016 showing no signs of slowing down.
Christie's report went on to state that commodity-dependent countries Canada and Australia—both of whom experienced rapid declines in their respective currencies over the past 12-24 months—have witnessed brisk growth in their major prime property markets. Sydney’s million dollar plus sales were up by 15 percent and Toronto’s by a whopping 48 percent in 2015. Growth was not consistent country-wide however, reflecting a broader trend: a rift between the performance of these luxury property markets themselves. This marked shift can be attributed to two key variables—affluent buyer demand and inventory levels—that strengthened sales in some cities and obstructed growth in others. In Canada for example, cities with strong international appeal, most notably Victoria, Vancouver, and Toronto, continued on an upward trajectory whereas luxury property sales in oil-money dependent Calgary slowed. “Strong governmental, banking and investment systems, favorable migration trends, leading educational institutions, and stable employment have all caused our market to defy the impact on other marketplaces that are experiencing declines in sales volume and average prices,” observes Chris Kapaches of Chestnut Park Real Estate in Toronto.
Also noted in this report is the luxury real estate explosion in Collingwood and Hamilton where people are purchasing homes for a third of the price and starting businesses in retail space that is less expensive as well. One result: In October a home in Hamilton sold after 17 offers for C$200,000 over asking price. In conclusion Toronto's luxury real estate market has kept the remarkable momentum established in 2014 and it is anticipated to continue through 2016 and beyond due to the cities financial stability, and international appeal. Additionally Toronto's recreational luxury markets like Collingwood and Muskoka continue to enjoy growth.