Luxury real estate sales rage on in Toronto

An “unprecedented” number of luxury home sales have been reported in one of the country’s frothiest markets.

Toronto saw 500 properties worth north of $2 million sold between January 1 and March 31 of this year.

“Performance in the top end of the Toronto housing market continues to defy expectations,” RE/MAX Realtor Barry Cohen said in a release. “Pent-up demand remains the number one catalyst for sales in the GTA, with inventory challenges across the board exacerbating the situation.

“Despite a relatively constant influx of listings during the traditionally heated spring market, demand continues to outpace supply at every price point.”

A total of 17 homes worth in excess of $5 million also changed hands between January and March.

The numbers are unprecedented, according to Cohen.

Sales of homes worth over $2 million increased 79% year over year; sales of homes worth $5 million and up increased 112.5%.

And the trend may continue.

“Every segment of the GTA housing market is working in tandem, building on momentum realized in 2015,” Cohen said.  “Economic improvement, low interest rates, greater stability in the stock market and a solid American greenback are all contributing to heated market conditions in the Greater Toronto Area.

“These same factors are likely to bolster sales and prices for the remainder of the year, setting off another round of record-breaking performances by year-end, especially at the top end of the market.”

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Breaking: Major developer enters bankruptcy

A large developer is taking steps to “deal with current cash flow issues.”

Toronto-based Urbancorp has started restructuring proceedings under the Bankruptcy and Insolvency Act in a bid to address debt issues.

“We determined, after much consideration and consultation, that a court-supervised process is the best way to deal with current cash flow issues,” chief executive officer Alan Saskin said in a release. “This will allow us to reduce debt in an efficient manner while continuing to focus on our core business.”

Urbancorp has over 1,000 units currently under construction and the bankruptcy proceedings are meant to allow the developer to focus on completing those homes.

“The process is intended to provide the companies with a stabilized environment in which to manage their affair,” Urbancorp said in a release. “The companies will follow a restructuring plan, including seeking Court approval of a sale process for certain of their assets.

“This will support efforts to maximize real estate values for the benefit of creditors and other stakeholders, in an orderly manner.”

Urbancorp and its subsidiaries – Urbancorp Toronto Management, Urbancorp Downsview Park Developments, Urbancorp St. Clair West Village, Urbancorp Lawrence, Urbancorp Mallow and Urbancorp Patricia – are part of a restructuring that will be overseen by trustee KSV Kofman Inc.

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