According to a recent yourhome.ca article, a hot real estate market is driving sales of luxury homes in prestige neighbourhoods like the Toronto Beaches.  Why?  Because as the economy recovers, move up buyers are regaining confidence in purchasing expensive properties.

A recently released report by Coldwell Banker Terrequity Realty states that the top-performing Toronto areas to buy luxury homes in 2009 were Forest Hill and the Bridle Path – no surprise to savvy Torontonians.  But even in the Beach, multiple offers and bidding wars are driving prices up.  Even fairly modest homes, some with no parking, are commanding top dollar.

Analysts say the spring market looks like it will remain hot, as buyers enter the market before interest rates rise in the second half of the year and the HST becomes a factor.

Existing home sales in the Toronto area were up by 77 per cent in February 2010 compared with the same time last year, according to figures released by the Toronto Real Estate Board.  The average price of a home was also up by 19 per cent to $431,509 (though analysts caution omparisons with the first half of last year because that was the bottom of the market).

The good news isn’t only for sellers.  Buyers take heart that there are far more listings to choose from this year than there were in February 2009 – another trend that is expected to continue.  Even so, desirable homes in hot neighbourhoods like the Beach are still being snapped up because of a lack of supply. The average home is on the market for only 22 days before being sold, compared with 45 days last year.

Do you consider your Beaches home to be a ‘luxury’ home?  Let us know!