Important Factors Behind the Sharp Rise of Real Estate Prices in Toronto

When you look for a place to live, what would you like to have in it? Do you want a futuristic home like the one featured in the Iron Man series from Marvel Comics? It is not a dream anymore as a replica was built in 2017 and was purchased in 2019. The ocean-facing house in La Jolla, California, was touted as the “Razor House” by the media as soon as it was up for sale. And if you think that the amount of 20 million dollars paid for it was high, go through the next example that will make your jaw drop in awe.

A Montana ranch is reportedly being sold for 136.5 million dollars. The Climbing Arrow ranch was publicly listed just two weeks ago, the first week of May 2021 and found a buyer just after a week. This will make this one of the most expensive properties sold in the USA in recent years. The property is spread over 80,000, covering four counties, and was featured in Robert Redford’s movie “A River Runs Through It.”

I am sure that after going through the examples mentioned above, your definition of high-priced properties will be changed forever. And these are not just a few instances as properties that are 100 million dollars in value are not a rarity now. But have you ever thought that property worth a hundred million dollars is really what you need, even if you can afford it? I am sure that not many of my readers would want such a property, but there are many buyers for these properties as they get listed on real estate websites, MLA listings and forums.

Properties in Toronto 

There are chances that you can come across properties worth 100 million dollars in Toronto, but that will be few and far between. Only luxury mansions and state of the art penthouses which are located in the most expensive neighborhoods would command such prices. You may think that there is a dearth of such properties as we do not see ads like these often, but there is a reason for this. This is not your usual property ads like condo or apartment for sale or something like it. Instead, these are exclusive properties as only a few people can afford to buy a 100 million + mansion or a luxurious penthouse in the city’s heart or right across the waterfront.

Properties all over the US and Canada have seen a sharp rise in the first quarter of 2021 as compared to the same period last year. The data for the first two quarters of 2021 is still not clear as the period will end on 30th June, when compared to 2019, 2020 showed a jump of 12%. This is something very unusual as real estate prices do not increase that much over one year. This happens only after extraordinary events.

The COVID-19 pandemic has been an unprecedented event in history. You can just compare it with the Spanish flu of the last century, but it was not spread globally and did not cause that much economic downturn. The full impact of the virus will only be known next year after the economy around the world will return back to normal. Developing countries will face tough scenarios as they will have to bounce back very quickly. That is why the housing sector in general and the real estate sector have to perform really good to expedite this process.

Final Word

Luxurious real estate properties will always be in demand by the super-rich. While you may think that these properties do not get much attention, this is probably due to not most of them remaining on the market for long, as they are snapped up right after they are placed on the market. Just like any other sector, the scenario related to the price of real estate in any city like Toronto can change within a few months. Only time will tell when this pandemic ends, and life will return to normal. Till then, we will continue to face volatility, just like the recent sharp increases in the prices.

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