JUST LISTED – Sunfilled Split 2Bdrm Layout Located In The Heart Of Leaside – $399,900

Great Leaside Opportunity!!

Fully Upgraded Kitchen with Caesarstone Coutertops & Stainless Steel Appliances.

Crown Molding In Main Living Space Along with Brand New Hardwood Flooring.

Top Of The Line Closet Organizers In Master Walk-In &

Extra Storage In Front Clost/Laundry Room.

Parking & Locker Inluded.

Walking Distance To 24Hr Metro, Boutique Shops, Resturants &

24Hr Ttc. 10Min Drive To Dvp, 401 Or Downtown.

Leaside Has So Much To Offer!

* Visit www.1801bayview505.com for interior photos & virtual tour

TORONTO MARKET REPORT – APRIL/MAY 2012

CONDO MARKET

So how do we explain the downtown condo market? A lack of overall listings is not the simple answer. In fact Active Listings are up 6% over spring of last year. Either the number of end user buyers for condos is leveling off or buyer needs are not matching available supply.  Developers better hope it is the latter and that they need to build bigger units that have floor plans with more useable space.

When purchasing a condo, buyers need to make sure the unit is unique from others; building developer, location, size of unit, exposure, layout, floor height, upgrades, terrace, in order to get top dollar in the future.  Currently the best buying opportunities exist in the resale market in the east end of the downtown core.  There isn’t a lot of competition and the area is still developing.  That being said, your investment will not only increase with inflation but with neighbourhood growth as well.

HOUSING MARKET

Well it’s a classic spring market in Toronto’s freehold housing sector.  Sellers are either pricing below market and holding off offers until a week after list to create multiple bids or pricing their home right at market value so that it sells in a couple days.  What does this mean? Not enough supply to satisfy the current demand.  Buyers need to get their financing in order ahead of time and prepare pay over list with no conditions.  Sellers need to make sure to not be too greedy.  Even though we’re in a seller’s market, if you price too high you may not get any offers.  Remember, a property is worth only what a buyer will pay for it.

INVESTORS

There is no problem in leasing your current unit.

JUST LISTED – Jr. 1 Bdrm at 25 The Esplanade Pl – $319,900

25 The Esplanade Pl – $319,900 – St. Lawrence Market

Sun Filled South Facing Jr.One Bedroom On High Floor. Approx. 661 Sqft.

Very Clean & Well Maintained Unit. Open Concept With Separate Dining Space.

Extra Large Vanity In Bathroom With Separate Shower Stall From Tub.

Locker Included In Purchase Price

Location! Location! Location! Steps To St.Lawrence Market &

Financial District. Blocks From Dvp & Gardiner.

This Unit Is A Must See!!

Public Open House: Sunday April 29th 2-4pm

* Interior Photos Available Upon Request

UNDERSTANDING THE COMING CHANGES TO THE TORONTO CONDO MARKET

There are big changes underway in the downtown Toronto Condo market: not just in the number of cranes that dot the sky, but in the underlying economics.

This will be the last year of the pre-construction boom in condo sales! The developers know it! Why do you think there are more new projects being rushed to market than ever before?  The pre-construction market is dominated by investors. Investors buy pre-construction for only two reasons. First they buy on the expectation that prices they pay today will be lower than prices four years out, when the unit will be ready for occupancy and registered. Today investors are being tempted by projects in the financial district at $700-$800 per sf without parking. In comparison, you can buy resale for $520 per sf at 7 King East, and that includes parking. For today’s resale prices to reach today’s pre-construction prices in four years, you need the resale market to appreciate at 9+% per year. It’s never going to happen.

The second reason that investors buy, is for rental income. When condo prices exceeded $500 per sf, most ‘Rate of Return’ investors (read North Americans and Europeans) left the market. The remaining buyers are what we call ‘Wealth Preservation’ investors (read Middle East, Asians, and SE Asians). They want a safe place to park their money and earn a return. At $600 per sf, they were able to achieve a ‘cash on cash’ return of about 4%. At $800 per sf, the return drops to 2%. Why would any investor put their money in a condo versus the bank?

TORONTO MARKET REPORT – MARCH 2012

SALES COMMENTARY:

In January TREB sales were up by 8.8% and February sales ran about 9% higher than the same month in 2011. So where is that market correction that people are calling for this year? I can tell you it won’t be this spring or summer.  I guess we’ll have to see what happens in the final quarter of 2012.

Resale Condo Market & the Pre-Construction Market

The biggest concern is that there is a growing disconnect between the resale condo market and the pre-construction market. The resale market is populated by end users who have real jobs and mortgages and the pre-construction market is mainly investor based.

Resale condos are going for anywhere between $475 and $600 a square foot, depending on the neighbourhood.  There are two types of areas in Toronto, developing and developed.  Keep this in mind when you are pricing out your property to sell or if you are purchasing.  Buyers need to stop expecting to pay $475/sqft if the property is located in an already developed neighbourhood, like King West Village or Yorkville, and sellers need to price their property wisely as you cannot expect buyers to pay through the roof for a property in a constant construction zone.

As for the pre-construction market, investors

JUST LISTED – 2 Bedroom Bloorwest Town/Loft – $399,900

Rarely Available Bloorwest Town/Loft!!

1394 Bloor Street West

Sun Filled Open Concept Unit with Soaring 10′ Ceilings & Large Windows.

Designer Stone Walls on Main & 2nd Levels.

Freshly Painted Throughout with Modern Fixtures.

Hardwood Floors On Main Level & Brand New Carpet On Stairs & In Bedrooms.

Huge Rooftop Terrace with Gas Hookup.

Direct Access To Private Garage.

Public Open House March 3rd&4th 2-4Pm.

* Interior photos available upon request

2012 is the Year to Upgrade

1)  Interest Rates:  Good time to upgrade and lock in for a longer term. Banks are offering a 10yr fixed rate at 4.69%!

2)  Mortgage Qualifications:  Since the new mortgage rules were implemented in 2010, Banks have tightened up on their approvals & refinances.  To make sure the Canadian economy continues to be healthy, they could tighten their policies even more.  Don’t miss your opportunity!

3)  Low Market Supply:  There is currently a lack of listings for condos under $400K and there are a lot of buyers taking advantage of the historical low interest rates.  Low Supply + High Buyer Demand = Happy Seller!!

4)  Upgrade Your Condo:  The condo market will eventually start to soften as investors & end-users will only pay so much per square foot.  Because of affordability and the fact that larger condo units have the housing market as competition, expect condos over $500K to level off first.  If you like the condo lifestyle but need a larger property, 2012 might be the year to get top dollar for your current condo and save the most on an upgrade.

5)  Move into a House or Upgrade Your House:  Historically houses increase in value at a faster rate than condos.  This is because residential real estate can be unique in many more ways; location, lot size, landscaping, layout & interior upgrades, which all affect property value.  There is still much room for growth for the Toronto housing market.  That being said, it would best to do an upgrade before prices get too high and you lose the opportunity to maximize your equity.

Keep in mind that many of the XY generations, like yourself, are settling down and starting families.  People are going to start upgrading their home over the next few years.  Reap the rewards and do your move before everyone else does.

Please let me know if you have any questions.  Also, if you know of anyone else that might benefit from this information, please pass it along.  I’m here to help!

Buyers Should Take Advantage: 2012

It’s never too early to start your research!

 

Buyers Should Take Advantage: 2012

1)  Ontario Land Transfer Tax Rebate – First time buyers get a rebate of $2000.  This is the equivalent of the first $230K of the purchase price.

2)  Toronto Land Transfer Tax Rebate – First time buyers get a rebate of $3725.  This is the equivalent of the first $400K of the purchase price.

3)  RRSP Home Buyer’s Plan Increase – First time buyers can withdraw up to $25,000 from their RRSPs for a down payment. These monies are tax free!

4)  Interest Rates:  Take advantage of the historical low rates; 2.99%.  Banks are also offering a 10yr fixed rate at 4.69%!

5)  Mortgage Qualifications:  Since the new mortgage rules implemented in 2010, Banks have tightened up on their pre-approvals and refinances.  To make sure the Canadian economy continues to be healthy, they could tighten their policies even more.  Don’t miss your opportunity, get approved today!

6)  Softening Market:  Expect the Condo market to soften this year.  Residential real estate is all about having a roof over one’s head. You either own the roof and pay yourself, or someone else owns the roof and you pay them.  Which sounds more desirable?  Don’t waste your money, paying yourself!!

Please let me know if you have any questions.  Also, if you know of anyone else that might benefit from this information, please pass it along.  I’m here to help!

TORONTO MARKET REPORT – JANUARY 2012

FACTORS TO CONSIDER IN 2012:

Residential Resale Market – We expect sales to remain at the 90,000 level.  Remember that the all time sales record was achieved in 2007? Toronto is now a much bigger market in terms of people and incomes than five years ago, so why would sales drop? With a lack of new detached housing, prices in this sector – particularly in Central Toronto – will continue to appreciate.

Condo Resale Market – We have 18,000 condo units that were completed in 2011 and half of them will be added to the resale market. This extra supply will mean that prices will be flat in 2012. Stay in the $500-550 per sf range and you will be in good shape.

People love the condo lifestyle.  Baby boomers downsizing and moving into condos has just begun. In five years, it will be significant. The ‘echo’ generation, children of baby boomers, are just entering the real estate market and want to live in condos, centrally located in a happening neighbourhood.  Lastly, Toronto’s immigration is not going to slow (80,000 per year).  Many of these people want to be living downtown, close to public transit, Universities, and the ongoing events & festivals that Toronto has to offer. That being said, expect demand to be high for condos in 2012.

Pre-Construction Market – Almost 100% of pre-construction sales are to investors. They buy condo units either to rent out or to sell as ‘Assignments’ to end users to live in. They look at rental rates and try to anticipate future price appreciation. By the end of 2011, pre-construction sales downtown were averaging $800 per sf which we believe is unsustainable.

TORONTO MARKET REPORT – DECEMBER 2011

RESALE CONDOMINIUMS & PRE-CONSTRUCTION NEWS

Currently the downtown condo market frenzy is centred on pre-construction sales. While there are too many launches to count (every downtown parking lot has a sign), the most important factor is to track the `price gap’ between this market and the resale condo market. The resale market is currently selling for approximately $500-550 per sqft and the pre-construction market is at $700 per sqft; higher for some premium projects.

When buying, investors are betting that in four years time, the resale market will rise to pre-construction price levels. When the price gap is below $100, investors are much more confident. However with the size of the current gap, we believe that some investors will start to pull back and there will be a number of new condo projects that will not be built. Pre -construction prices should begin to level off and in some projects might actually be reduced!

We also have to take into consideration the rental rates. Rental rate have moved higher by over a $100 a month this year.  Investors will not come close to breaking even at current pre-construction prices unless rental rates move higher by another $250 per month over the next four years. Is that even realistic?

What does this mean?