Who’s buying luxury homes? It may not be who you think #LesTwarog
Jamie Henry
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Toronto homes: gone in just 20 days
Homes are selling fast in Toronto, according to BMO economist Robert Kavcic. He says in a research note that last year’s average of 21 days, which was “already low,” has dropped again to 20 days. He contrasts this with the time taken to sell a home in Calgary, where the average has increased sharply, from 28 days a year ago to 40 now. On prices he notes that condos are increasing at a slower pace, but that detached houses are in high demand in Toronto; however “liquidity in Calgary has effectively dried up.”
Who’s buying luxury homes? It may not be who you think
A new report that looks into who is buying the luxury homes in Canada’s biggest cities reveals some interesting insights. Sotheby’s International Realty Canada found that baby boomers, often expected to downsize in retirement, are frequently buying bigger, high-end homes. These wealthier boomers have worked hard, saved and built up equity in their existing homes and are often mortgage free. The boomers are most likely to be doing so in traditional neighbourhoods. The next age group down, Generation X, want to live in family homes close to the best schools; while Generation Y, the millennials, are seeking the cool, urban neighbourhoods with good “walkability.” While these are the findings from responses to the survey, there will of course be wide differences across Canada and especially across demographics.
Winnipeg is a buyers’ market
New data from Realtors in Winnipeg shows that there are more MLS listings in the area now than at any time since 1995. In the first quarter of 2015 there were 5,499 listings, 37 per cent higher than the 10-year average. March listings were 26 per cent higher than a year earlier. David Mackenzie of Winnipeg Realtors said that it’s a great time for buyers with high listings and low interest and mortgage rates. He added: “Our mortgage brokers are telling us we have likely not seen rates as low as we have now since the 50s or 60s.” For sellers, though, there is greater competition, pushing down selling prices. The figures show that 70 per cent of houses and 71 per cent of condos are selling for below the listing price. Homes in the $250,000 to $299,999 range are attracting the most interest and are selling within an average of 28 days.
Oliver seeks balanced-budget legislation
Finance minister Joe Oliver has tabled a bill to commit the federal government to a balanced budget, a move certain to become law with the Conservatives’ majority. Although most of the provinces have had similar laws since the 1990’s this is the first time for the federal administration. The budget will be allowed to fall into deficit in the event of recession, war or natural disaster.
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