The price of luxury homes in Toronto keeps going down
Not even the wealthiest of home buyers are immune to Toronto's volatile real estate market right now.
A new report on luxury residential properties from Royal LePage shows that the average price of houses on the higher end of the market dropped by roughly $6,000, year over year, in the first quarter of 2018.
That might not sound like much, given that the average price of a high-end home is still $3.52 million, but it's not a good sign when compared against Toronto's increasingly hot luxury condo market.
Sales of luxury houses have also declined year over year by 68 per cent, but numbers have dropped off a cliff all around when it comes to detached houses.
Experts continue to blame the sharp dip on two things: the contrast between last year's record-breaking market numbers and a series of cooling measures recently rolled out by both our provincial and federal governments.
"The introduction of the new mortgage stress test ... created market turmoil as buyers moved to the sidelines in order to gauge the impact on luxury home prices," reads the Royal LePage report. "Similar to what was witnessed in the overall residential resale market."
And similar to what is now being witnessed in the overall residential market, luxury condos are on fire.
Prices of high-end condos are forecasted to rise 10.4 per cent this time next year to $1.85 million on average. Luxury homes, on the other hand, are expected to remain flat.
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