Luxury Property Price Remain Strong in Biggest Cities of Canada
A report was released by Royal LePage on Thursday in which it stated that luxury real estate cost in Canada Housing Market remained resilient so far during this year, despite of dropping in volume of sales as buyers and sellers adjust to the measure of new housing market.
Tighter lending rules for mortgage in the form of stress test is implemented at during beginning of this year and is designed just to make sure that borrowers could afford mortgages at the period of rise in rate of interest and created market turmoil as home buyers in Canada moved to the other sideline in an order just to scrutinize an impact on price of luxury homes.
It was compounded by increase in taxes for all homes that cost more than over C$3 million in British Columbia and non-resident property tax in Ontario.
Phil Soper, CEO and President of Royal LePage said that home prices in luxury real estate market of Canada remained remarkably resilient when you consider economic headwinds that government interventions have been created.
“Resilience of value of homes reflects a very strong aspirations of buyers of luxury homes to reside and work into cities as they are consistently ranked among most desirable place on the planet.”
During first 4 months of year 2018, cost of a median luxury condo in Vancouver and Toronto areas rose by 7% and 10.4% respectively as compared to the same period of time during last year.
Growth of price for luxury condos outpaced which is of luxury detached homes, that has been rose by 5.2% and a fall of around 0.2% respectively.
Mr. Soper said that increased price growth for condos reflects demographic shift across North America.
Mr. Soper also said that baby boomers are exiting their luxury condos and large family homes—with low maintenance of lifestyles, which are the favored destinations.