Foreign buyers are flocking to Toronto and Vancouver luxury real estate markets and driving prices higher. Two most recent reports published shed new light on the drivers of the higher prices. One quarter of real estate agents with a major Canadian real estate brokerage say that 25% of the luxury homes in main Canadian markets are purchased by foreign investors. As per a new study from Christies International Real Estate, Toronto and Victoria B.C. are the second and third hottest real estate markets in the world.
The concentration of foreign buyers in Toronto and Vancouver seems to be due to Canada’s stable financial and political systems and Canada’s reputation for openness to immigration, diversity and cultural tolerance. Another reason is also the low Canadian dollar which makes it a bargain for Canadian luxury homes.
What are your thoughts on this?
Will luxry home prices continue to increase?
What will happen when the Canadian dollar strengthens and our political stance around real estate changes?