Luxury Real Estate...
The buyer pool for Canadian Luxury Real Estate will escalate in scarcity in 2020 due to "possible" rising interest rates after an expected early year lowering of interest rates to accelerate the spring market, and impacts from the foreign buyers tax implemented previously in the Golden Horseshoe and Vancouver Markets and red hot market appreciation in 2019. Luxury markets across the globe are expected to take the biggest hit in 2020 do to a general desire to invest in higher volume, smaller, high demand, high cap rate properties in urban areas like suburbs or gentrified city suburbs. The Luxury Market in Canada may see a sharp rise if foreign investment diverts away from the traditional two markets of Toronto and Vancouver, which seems to be the case. Montreal, Ottawa and some other markets are seeing an increase in buyers for high end Luxury properties and the low inventory in these markets for mid range asset class properties will force some buyers to move up vs down to get the properties that best meet their lifestyle and living requirements.
The generally accepted theory for determining the final sale price of a luxury property is the number of days that it has been on the market. These properties seem to depreciate in price for every day a property is on the market. The negative perception of a lack of desirability or affordability and the inherent cost associated with the accumulated days on market or the carrying cost of these homes by the Seller, seem to put many Luxury properties at risk of being unsalable.
XLR8 Realty Group inc offer the district advantage of offering accelerated solutions to marketing, selling and closing luxury properties throughout Canada and abroad.